It has been determined that the Zune can run Linux based upon its uses of a Freescale iMX31L processor. Read more here...
For quite sometime now there have been people working on getting the Linux to boot on the Zune. Mys Videl from zuneboards.com has posted an update the other day on his progress. She states:
"Yes, I've been working on it for quite awhile and has a lot of bugs to work out and a lot of features to work out. It currently has to be booted while synced and has limited capability's but I've at least got it partway working. Hopefully I can get mine released before the competitors though ."Read more about her progress here: