It's confusing that microsoft does not support their own proprietary file type on the Zune HD. I know you can play some dvr-ms files, like SD tv shows recorded on Media Center, but not movies that have been coverted to dvr-ms. I converted my whole collection to dvr-ms to get away from transcoding, to have better support on the extenders. It would have been nice for these movies to work on the Zune HD.
From reading it seems like the Cucusoft product is good for converting dvr-ms for Zune. Anybody else got any recommendations? I did do one by using VideoRedo to convert it from dvr-ms to mpg using QSF (so only took a couple of minutes) then I converted it to wmv using Windows Media Encoder. It took a long time and came out looking crappy.