So are Zune features coming or not?

That's one of the bigger questions when it comes to the future of Windows Mobile. Some of us around here *cough* have made it no secret that the software on the Zune HD would fit just fine on a Windows phone. Will that happen?

Let's start with the above video from CNet [via pocketnow] with Ina Fried and Molly Wood interviewing Microsoft CEO Steve Ballmer.

The talk runs the gamut of Windows 7 to netbooks to tablets to mobile.

"It's all about shipping good product," he says, going on to trumpet Windows Mobile 6.5 (which, after all, was why he was there).

There's more of the party line about Windows Mobile 6.5, but then he gets down to brass tacks.

What is Zune HD? Zune HD is a couple things. Number one, Zune HD is a music player with a nice music service. By the way, the same software will be available on Windows Phones and Windows PCs. You have that today on the PC, you'll see that in our phone environment as well.

But, he adds, "It's not our plan to make a phone out of that (Zune HD) hardware."

Then there's ZDNet's Mary Jo Foley, who spoke with Jose Pinero, Director of Communications for Microsoft’s TV, Video and Music Business on Tuesday at Microsoft's Open House in New York City.

“Our next step is mobile phones, but we haven’t talked about a timeline for when that will happen,” he said.

Pinero said Microsoft’s more immediate priorities are to get Zune music and Video services on the Xbox. Microsoft officials said earlier this year that Microsoft plans to make the Zune video marketplace available as part of Xbox Live this fall.

Take that however you want, but if Microsoft does the right thing, we'll see it as a major part of Windows Mobile 7.