From our Zune blog
The spring update provides a way to have Zune software adjust the bitrate (and thus the size and quality) of music tracks that get synced to your player.
Jason Dunn of Zune Thoughts has prepared another of his excellent how-to videos
, showing how this feature works.
As the video shows, you can set this option differently for each player that you own. So, for your smaller-capacity players, you can drop the bitrate of your synced music tracks to, for example, 128 Kbps - while keeping larger, higher-quality files on your larger players.