Zune has better sound quality then ipod

I have two friends that picked up Zunes recently. One even got two (for him and his wife). Both familys replaced ipods and they both tell me they like the Zune a lot more than their ipods.

I have a Sansa (e200) from Sandisk and I think its the best small player on the market, more features and better value then ipod nano. But you were looking for higher capacity so it's probably not an option for you.