No direct way, but I downloaded TMPGEnc Xpress last night and used the template Zunester made available here:
http://www.zune.com/zune.zip
Using TMPGenc Xpress was absolutely easy, easy, easy! Drag and drop and go. The conversion took a little while on my MCE PC, but then the transwer to the Zune was very fast as it required no further conversion during sync. I think perhaps I'll spring for the cost of TMPGEnc Xpress.
-steve