LAS VEGAS--Microsoft didn't exactly take our breath away with yesterday's CES 2010 keynote, but we're getting word that Zune HD users will soon have some good news to shout about.

Come Spring, the Zune HD should receive a firmware update providing support for MPEG-4 part 2 Advanced Simple Profile videos, including the torrent junkie's format of choice, XviD. When pressed on whether DivX support would also be added, our contact explained it was unlikely, because of proprietary restrictions. Also unclear is what range of resolutions will be supported, although we did confirm that the new format support will maintain compatibility with the HD AV dock accessory.

The firmware update will also bring over a Smart DJ feature, which currently is found only in the Zune's client software. The addition of Smart DJ playlists brings the Zune HD in line with the on-the-fly Genius playlist capabilities of the iPod Touch. Better yet, Zune Pass users within Wi-Fi range will have the ability to create Smart DJ playlists that incorporate streaming content from Zune Marketplace, in addition to songs already stored on the device.