Microsoft's new Zune HD MP3 player is drawing mixed reviews from online shoppers -- some like nifty new features like the touch-screen interface while others pan the device's limited storage space.

"I think they've done a really good job with the Zune HD. It's gonna be awesome," said Melissa Bougneit, who posted a review Thursday on Amazon.com.

But C. Hunt said even the larger 32 GB Zune HD is lacking in terms of having enough space to store songs, videos, and other digital content. "I've got myself an 80 GB and the biggest Zune would leave me hanging with nothing left for expansion," said Hunt.

A user going by the name "Blink Blink" agreed. "32 GB is an insult to me and many of Zune's loyal users," "Blink Blink" said of the player, which uses flash-based memory and thus has less space than MP3 players that rely on a hard disk drive to save content.

On the upside, flash devices are generally more response than those that use HDD and start up faster.

Even "Blink Blink" said Zune's overall design and advanced features were impressive. "I'm a power user and all of its specifications are an Apple buster," said the user.

Both the 16 GB black version and the 32 GB platinum model Zune HDs can be pre-ordered from Microsoft's Zune site or from retailers such as Amazon, Best Buy, and Wal-Mart. The 16 GB device is priced at $219, while its larger cousin goes for $289.

Zune HD is the first Zune model to feature a touch-screen interface similar to that found on Apple's iPhone. It also offers a built-in HD Radio receiver, 720p HD video output capabilities, a Wi-Fi antenna, and a Web browser. Zune HD uses Nvidia's Tegra chip, an ultralow-power HD processor, to achieve high-definition output.

Microsoft needs Zune HD to be a hit, as the company has become all but an afterthought in a mobile entertainment market dominated by Apple's iPhone and iPod devices. Revenue from the company's Entertainment and Devices Division, which houses Zune, fell 25% year-over-year in the most recent quarter -- to $1.2 billion.

Zune sales were particularly sluggish. Microsoft's EDD unit saw non-gaming sales, mostly from Zune, plummet by 42%.