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The technique involves modifying your Windows registry to make the Zune show up as a mass storage device in Windows, renaming the files or zipped version of them as JPEGs, and copying them onto the Zune.

After disconnecting your Zune from your computer, you can trade MP3s, movies, or any other file to your friends using the device's Wi-Fi connection. When your friends get home, they modify their registries in the same way, copy the files onto their computers, rename the files to their original extensions, and Bob's their uncle. But the party may not last too long after Microsoft gets wind of the hack.

The reason the technique works is that the Zunes are under the impression that the files are very large JPEGs. Using a firmware update, Microsoft could curtail this type of sharing by limiting the file size of tradable JPEGS. I'd imagine it won't be too long before such a limit appears. Rumor has it that Microsoft will also be limiting the file size of tradable video files if/when video trading is officially activated, so it already probably has much of the code it would need to add a JPEG file size sharing limit.

If you follow the below tutorial and decide you want to keep your Zune's ability to trade such files, you may not want to agree to any Zune firmware updates from Microsoft, although since the technique involves some use of the Zune software, Microsoft could make the firmware update mandatory.