The Sonic God said:...However, the iPod can play many more audio formats,...
Example, please? (*other* than QuickTime-native formats)
The Sonic God said:...and convert them with the iTunes application as needed.
Any audio file that the Zune software can read but the Zune itself can't play, the software will convert to WMA format during the sync process. I've only seen this happen maybe once with my Zune. All my music is in either WMA, MP3, or WAV format, with the vast majority in MP3 -- and none of it is DRM-infested. It all plays fine. The one time I saw the Zune software bother with converting an audio file was when it found some random sound file outside my "My Music" folder and auto-sync'd it.
Similarly, any video that the Zune software can play but the Zune can't will be converted to WMV format. At the same time, if the video is too large, it will be reduced in dimensions to fit the Zune screen, so the Zune won't have to resize it on-the-fly.
The only formats I've come across that the Zune software doesn't have a codec for are those that are native to QuickTime, such as MOV format video files.
After checking the options for my Zune software, it supports formats with the following file extensions: