Microsoft’s Zune (yeah, the famous iPod killer…) is preparing for a complete overhaul, since its initial sales turned out to be less impressive than anyone at Redmond had expected.

Zune Scene reported back a while ago that the Redmond-crafted MP3 player is on track of welcoming its next generation, dubbed Zune 2.0 (not an official name, don’t worry…).

We’re talking about two types of Zunes, a Flash-based, 4GB and 8GB device meant to be a competitor for iPod Nano and the iPod inside the iPhone, and an 80GB hard drive Zune with much more room to store music, pictures and movies.

The Flash Zune is allegedly called Draco, while the hard drive one is code-named Scoprio.

Zune Scene found out from a source inside Microsoft that the production for the Flash Zune had begun on July 23, as scheduled, but because Draco’s big brother Scorpio ran into some cable troubles, the production for both devices is now delayed.

“A significant percentage of the hard drive based Scorpio units were experiencing continuity problems between the flex cable and pcb. In other words, a wire was coming loose. Our source went on to explain how there were emergency meetings and a new flex cable design will be implemented. The new cable will have a "S" shape (not a folded accordion shape). It should prevent tension build up during assembly and solve the problem.”

The pesky cable pushed production for the Flash Zune way beyond the initial date of August 31, while the Scorpio Zune (or the HDD one, if you prefer) will apparently not be on stores’ shelves before October.