Open the Zune software and follow these steps:

1. Click Options–>Sync–>devicename and then click Check for Zune Device Updates.

The Zune software searches the Internet for the latest version of the firmware. If a newer version of the Zune firmware is available, you receive the Update time dialog box. If this is the case, click Next.
Important Do not move or disconnect your Zune device until the update is completed.

2. As the update continues, you receive the Update in progress dialog box.

Note The update may take several minutes to be completed. During this time, your Zune device may restart several times. Be patient.

Update in progress (transferring)

Update in progress (waiting)

3. After the update is completed, you receive the Zune update complete dialog box. Depending how your Zune device is configured, click Next to complete the update process and continue to the next step, or click Close to complete the update process.

Update complete (completed with Next option)