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The Internet rumor mill is abuzz today with additional details regarding the possibility of Microsoft delivering a smartphone based on its Zune music player - in the mode, of course, of Apple's eagerly awaited iPhone.

Microsoft did reveal plans to create a whole series of devices under the Zune brand when it first introduced the audio player last September. Zune general manager Chris Stephenson even said "a Zune phone is definitely part of the future of this brand" at the news conference unveiling Zune. He didn't elaborate as to what type of features this device would offer, when it would be available, or whether the smartphone would run Windows Mobile.

We may now have more details.

According to CrunchGear, which cites a "sound tip," it is likely a Zune smartphone will not run on Windows Mobile, but will feature a Zune-like interface instead. (Why can't there be a Zune shell with Windows Mobile guts?) It'll also be capable of wirelessly syncing video with the Xbox 360 gaming console.

If Microsoft does in fact have plans for a Zune phone - and if so, rumors are pointing towards a release in time for Christmas - the software-giant must be hoping it'll do better against the iPhone than the Zune music player has done against iPod so far.

In December, Zune took 12 percent of the hard disc drive-based MP3 player market. While that may seem like a lot, Zune didn't even make the overall top ten (including flash and hard disk players), which was dominated by eight iPods and a pair of SanDisk models.

One potential problem for Microsoft - but not for Apple with the iPhone - is the company’s status as a smartphone platform vendor. With Windows Mobile, of which the latest edition (Windows Mobile 6) may be introduced at 3GSM later this month, Microsoft has worked years to reach its current position as the worldwide number two smartphone OS player - far behind Symbian, but ahead of the Palm OS and up and comer Linux. Palm, Inc. even picked up Windows Mobile for three of its smartphones over the past year.

Microsoft’s many partners, who license Windows Mobile for their wireless handsets or develop software and services for the platform, aren't going to be happy if all of a sudden Microsoft becomes one of their competitors—even if Redmond becomes a rival that doesn't use Windows Mobile. (Heck, the consortium - led by Nokia - that formed Symbian last decade did so in response to Microsoft’s pending stab at their turf.)

And wouldn't Microsoft choosing not to use Windows Mobile for its own smartphone raise questions as to why? In effect, it would be telling others the OS is good enough for them, but not for itself. Sure, if the rumors are true, Microsoft may not use Windows Mobile so as not to step on the toes of its partners, but that’s not necessarily how it may be perceived.