Unconfirmed sources report that a young Swedish hacker named Nutzipper has defeated the Digital Rights Management on Microsoft's new mp3 player the Zune. Our source also indicates that the hacker has also compromised the Zune's Wi-Fi music sharing system. The Wi-Fi hack apparently allows users to secretly transfer music from any nearby Zune. Microsoft is very concerned about the possible security breach and the RIAA is threatening to sue Microsoft over the faulty DRM standard.

The young Swedish hacker apparently received a Zune from an American source, the Zune is not available in Europe yet, and quickly set to work. Nutzipper, who already has a reputation for stellar hacks, must have completed this hack in just one week of feverish work.

The hack, called zukebox, is rumored to allow any user the ability to download files from any Zune within range without permission and without the users knowledge. With the addition of the DRM hack the files become playable and tradable indefinitely. Zukebox, if it exists, could spell the end of all digital DRM protected music on the Zune.