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According to reports on Engadget Microsoft's iPod KIller ( joke) is going by the name "Project Argo" . Details are well hard to come by, but tech gossips are doing twirls Gizmodo says the player maybe called The Zune.
there's no game menu to be seen on the device, putting those rumors of portable gaming from Xbox branding in possible jeopardy. More game options possibly coming in the 2nd iteration.
There's also mention of a black version of the Zune, being shown on a music video for the band CSS, and the brown version on the cover for "Band of Horses". You can display Album covers for the song you're listening to on the screen, which is "big enough" and looks "pretty good". Paul Oakenfold also has a tie-in deal.
Microsoft's "Argo" / Xbox wireless portable media player