Kevin pointed me to Crave where they’re talking about a Zune-phone. Seriously!

Wacky rumor or legitimate buzz? CrunchGear is reporting that a well-connected tipster has informed them that Microsoft is developing a “Zune phone.” Allegedly, it’ll be able to sync with other Microsoft devices, like the Xbox 360 and its movie download service. And it probably won’t run Windows Mobile–it’ll have a Zune-branded interface instead.