From an article over at engadget:

it would appear they’ve settled on $249.99 (not to be undercut by Apple after all), and will be launching the device in the US market on November 14th. Other pricing includes individual tracks for 79 Microsoft points apiece, and your standard $14.99 monthly fee for the Zune Pass service

There is also some info on accessories and accessory prices as well as some info on the preloaded content. Try as they might, I do not see them taking over the Ipod market but there was a time I said the same thing re: Netscape versus IE.