At least this site didn't die at midnight last night
You gotta figure MS will do something to fix this, warranty or not. I don't think they could afford to say 'sucks to be an early adopter' to everyone who bought the original Zune. I expect it really is everyone.
From the reports it is 'time bombed'. It is mitigatable by resetting the clock, which can only be done by openning the unit and disconnecting the battery, or presumably by totally draining it. Charging the unit is OK, but hooking it back to a PC corrects the clock and re-activates the bug. Kind of defeats the function if you can't manage the music on it.
This will be interesting. I don't expect it will be tough to find and smash the bug, but so far software updates seem to have been dependent on docking a working Zune and re-flashing it. I wonder if there will be trickier to flash a Zune that is stuck.
P.S. was at work reading this. Wife just checked my 30G at home, yup, it's stuck. Wonder when the 4, 8, 60 and 120s die