Update I received a message that said i can update the Zune and i said later. Since then, it didn't pop up again and i want to update the software. How do i update it?

How to update your Zune player
Overview
If you haven't used your Zune player in a while, you might need to update it in order to get the latest features and improvements.
Steps to update

1. On your computer, start the Zune software.
2. Connect your Zune player to your computer by using the USB cable that was included with your player.
3. If a newer version of the Zune firmware is available, you'll see a notice to update your player. You can also manually check for new player updates in the Zune software. Go to Settings (located at the top of the screen), Device (located in the upper-left corner), and then Update (located in the list at the left).
   
4. If you receive a notice to update your player, follow the on-screen instructions. Important During the update process, don't disconnect your Zune player it until the update finishes. The update might take several minutes. During this time, your Zune player might restart several times.
   

Connect it to your computer. Download Zune. Click Phone. Click View Sync Options > Update > an software update may pop up

May be it's a spam or update server is not ready. Contact your customer care staff.
Thanks
Arnob

Full instructions can be found at Microsoft's site:
http://www.microsoft.com/windowsphone/en-us/howto/wp7/basics/how-do-i-update-my-phone-software.aspx

Basically once you receive the update, make sure you have space on your computer and phone and connect your phone to Zune software on your PC or Windows Phone 7 Connector on your Mac.


For PCs, use the Zune software and click Update Now. In the Windows Phone 7 Connector for Mac, click Install Updates.

That should get you the latest update.

you need to update your software. go to the sony ericsson website for software update. dload the software updater application.

I think Microsoft is playing a "money" trick (which I will explain in a few minutes) on all Zune owners. I have a Zune 120gb unit and it say "contact support" with a number "5" on the screen. This screen popped up after the Zune software claimed I needed to update the software for the Zune unit to be able to play. So I did. Shortly after, the message "contact support" popped up and rendered the Zune useless. My wife contacted Zune support and spent a better part of an hour speaking with a customer service agent, his supervisor and a manager with the end result being that I would have to pay ($169.00 -US Dollars after paying $250 for the unit) to get it serviced.
I find it suspicious that after the software update, the Zune went kaput. Now I have a $250 paperweight. I should mail it back to Microsoft and write them a note asking them to take a look at the Domino Pizza commercial where the man (I imagine he's a manager) sees the picture of the pizza toppings sticking to the roof of the box and saying this is unacceptable. This will be the first and last time I will be purchasing anything from Microsoft. Lesson learned.
I've read quite a few posts where other Zune owners are experiencing the same thing. Weird and coincidental at the same time. Didn't Microsoft get sued a few years ago for trying to monopolize the computer industry? Hmm. I get the feeling you cannot trust this company.

instalation

try looking at your wireless connection and in this case try deleting your orginal connection and creating a new connection

I found this on the Zune technical support (if this does help, be sure to rate my solution please):
Your Zune device is not detected by your computer or the Zune software
View products that this article applies to.

SYMPTOMS
When you try to use Zune Software, you experience one or more of the following symptoms:
• The Zune device is not detected by the computer. 
• The Zune device is not detected by Zune Software. In this case, when you pause on the device icon in the lower-left corner, you receive the following error message:
No Zune device connected 
• If you restored the Zune device software, the following messages are displayed on the Zune device:
Connect Zune to your PC
On your PC, open the Zune software and restore the Zune device firmware 

THINGS TO TRY
To resolve this issue, follow these steps:1. Update the Zune software on the computer. To do this, click settings, click software, click GENERAL, and then click CHECK FOR UPDATES.

If the issue is still not resolved, go to the next step. 
2. Restart the Zune device. 

To do this, follow these steps: a. Set the Hold switch to the unlocked position. 
b. Press and hold the Back button as you press the top of the Zune pad. 
When the Zune device begins to restart, release the buttons. 

If the issue is still not resolved, go to the next step. 
3. Disconnect the Zune device from the computer, restart the computer, and then reconnect the Zune device. 

If the issue is still not resolved, go to the next step. 
4. Connect the Zune device to a different USB port on the computer. Use a USB port on the back of the computer. Do not use a USB hub. 

If the issue is still not resolved, go to the next step. 
5. When you connect the Zune Sync Cable to the connector port of the Zune device, make sure that both ends of the sync cable click into position. Additionally, make sure that the sync cable is not connected to the device at an angle. 
6. Connect only one Zune device at a time. If you already have a Zune device connected to the computer, any other Zune that you try to connect will not be detected by the Zune software. Disconnect any additional Zune devices, and then try to connect again.

If the issue is still not resolved, go to the next step. 
7. If a full-screen battery image appears when you connect the device to the computer, you must let the device charge for several minutes before the device will start and be detected by the computer. 

For more information about how to charge a Zune device, click the following article number to view the article in the Microsoft Knowledge Base: 
927348 (http://support.microsoft.com/kb/927348/) How to charge the battery in your Zune device 
If the issue is still not resolved, go to the next step. 
8. If you are using Windows Vista, install the Cumulative update rollup for USB core components in Windows Vista software update. This update resolves some reliability issues in the USB core components in Windows Vista. You will achieve better reliability in various scenarios by installing this update. 

For more information about this update, click the following article number to view the article in the Microsoft Knowledge Base: 
941600 (http://support.microsoft.com/kb/941600/) Cumulative update rollup for USB core components in Windows Vista 
If you are not using Windows Vista, or if the issue is still not resolved, go to the next step. 
9. Examine Windows Device Manager. To do this, follow these steps:a. Click Start, right-click Computer, and then click Properties. 
b. Click Device Manager. Zune should be listed under Portable Devices. 
Note If the device was installed incorrectly, Zune may be listed together with a yellow exclamation mark (!). Or, it may be listed under Other devices as USB Device.
Double-click Zune, and then click the Driver tab. The current version of the driver that is installed should be 2.3.1035.0.

If Windows Device Manager indicates a device problem, or if the version of the driver that is installed is not the current version, you must update the driver. To do this, follow these steps: 1. Right-click Zune or USB Device, and then click Properties. 
2. Click the Driver tab, and then click Update Driver. 
3. Click Search automatically for updated driver software. 
4. Click Install if you are prompted to do this. 
5. After the driver installation is complete, click Close. 
If Windows Device Manager found the drivers, click Close. If you want to locate the drivers manually, follow these steps:1. In the Zune Properties dialog box, click Update Driver. 
2. Click Browse my computer for driver software. 
3. Click Browse, locate the \Program Files\Zune\Drivers folder, and then click OK. 
4. Click Next. 
5. Click Install if you are prompted to do this. 
6. After the driver installation is complete, click Close, and then click Close again. 

If the issue is still not resolved, go to the next step. 
10. Examine the computer for conflicts that involve the USB host controller or the root hub. To do this, follow these steps:a. Click Start, right-click Computer, and then click Properties. 
b. Click Device Manager. 
c. Expand Universal Serial Bus controllers. 
d. Verify that no errors appear in the list of USB devices. A yellow exclamation point or a red "X" next to a device indicates errors. If any errors appear, contact the manufacturer of your computer. 

For more information about how to troubleshoot conflicts in Device Manager, click the following article number to view the article in the Microsoft Knowledge Base: 
310126 (http://support.microsoft.com/kb/310126/) Troubleshooting device conflicts with Device Manager 
If the issue is still not resolved, go to the next step. 

11. Try using a different Zune Sync Cable.