[Update, Thursday 8:33 a.m.: It appears the fix worked. Details here.]

Microsoft just issued the following statement explaining the outage that has affected thousands of Zune music players today:

"Early this morning we were alerted by our customers that there was a widespread issue affecting our 2006 model Zune 30GB devices (a large number of which are still actively being used). The technical team jumped on the problem immediately and isolated the issue: a bug in the internal clock driver related to the way the device handles a leap year. That being the case, the issue should be resolved over the next 24 hours as the time change moves to January 1, 2009. We expect the internal clock on the Zune 30GB devices will automatically reset tomorrow (noon, GMT). By tomorrow you should allow the battery to fully run out of power before the unit can restart successfully then simply ensure that your device is recharged, then turn it back on. If you're a Zune Pass subscriber, you may need to sync your device with your PC to refresh the rights to the subscription content you have downloaded to your device."

Microsoft offers more details on the cause of the outage here.