Zune Phone snapvoip.blogspot.com
According to people in the know, Microsoft seems to be getting a Zune Phone ready for the upcoming MWC, Mobile World Congress. They also mentions that the project is a joint venture with Nvidia and the phone is based on Tegra platform and runs windows mobile 7 as the OS.
Among other multimedia offerings the phone will have 720P HD video and HDMI, and USB connections.
MuyComputer (Translated) via Gizmodo