Two new tidbits of Microsoft MP3 player we found from a tipster. One is a WiFi Proximity sensor that works similarly to how movie theatres are Bluetoothing ads to unwitting cellphone users. When you venture in range of an "Ad-Node", the node sends you a new message to your device, which may be in the form of a 15 second ad. A new message indicator will pop up and notify you, which will then give you say, a 10% off coupon if you watch the ad.

If you're on a bus or the subway with another user, you two can make an ad hoc network and share songs with each other. You can browse theirs and hide your own if you want. If you hear something you like, mark it for download and when you get home, the software will show you those songs in the music store. There's also probably going to be integration with the Xbox Live Anywhere.

The second bit of news is that Microsoft will scour your iTunes library and give you all the songs you already paid for, for free! This way you won't have to pay twice for your music, which is a huge barrier for Microsoft to attract users to their service. If you've got $1000 worth of music in your iPod, why would you change to something that required you to buy it all again? This move makes sense. – Jason Chen