Study the clip at 28 seconds in. You'll see that the display is working fine before the white mask flashes back in. While OLED engineers in the audience can feel free to correct us, we think there's a strong possibility that the problem is software-based (and thereby firmware-fixable through a patch).
via Gizmodo: What a Broken Zune HD Display Looks Like
..concern had been properly kiboshed by assurances from the company that we'd gotten a fluke unit... and by the properly working replacement we received to finish the review with. Now, however, it seems as if we weren't alone in our glass cage of emotion, with gaggles of irate Zune HD users emerging from the woodwork in order to express their disappointment online.
Via Engadget: Has your Zune HD screen been unresponsive?
I agree that may be a firmware problem. Microsoft should issue a fix asap! They don’t need the bad press for Zune HD right now when it’s doing well and getting good reviews.