USA Today has a brief interview with Bill Gates posted today were they talk, among other topics, about the future of media and online advertising and how does Zune, Office Live, Xbox Live and Windows Mobile fit into it. When asked about Microsoft's short-term expectations for Zune, here is what Gates had to say:

We expect the satisfaction on the software to be dramatically higher this year than last because we made some big breakthroughs. We think we'll grow the market even more. Certainly the retailers are thrilled by what we've got here. One of our challenges will be making sure we can manufacture to the demand we expect.
You can read the complete interview at USA Today's website.