Redmond, Wash. - Microsoft (NASD: MSFT) on Tuesday released its previously announced software update for its Zune portable digital media player, and also said that it partnered with Wi-Fi hotspot firm Wayport to allow Zune owners to access the Internet from more than 9,800 participating McDonald's restaurants in the U.S.

Among other advances, the software update lets users wirelessly stream and download music from the Zune Marketplace online store on the go, and tag and purchase songs directly from the device's built-in FM radio.

The Zune Marketplace now offers more than 4 million songs -- 80% of which are available as DRM-free MP3s; 8,500 music videos; 3,000 TV episodes; and over 6,000 audio and video podcasts.

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http://www.zune.net