If ZuneScene is right, not only will Microsoft release a new Flash-based Zune (codename Draco) but an 80GB hard-drive based model is also on its way. Codenamed Scorpio (continuing the Greek mythology theme started with the Argo), little is known about the new Zune except for the increased capacity.
Mass production is scheduled to start in July with a street date likely to be in time for the 2007 holidays shopping season. Pre-production units are already floating about in Redmond so we might see pictures sooner than later.
There is no word yet on whether the new Zunes will be offered in the US only or if they will show up in new markets (eg, Europe).