Originally Posted by
smoledman Restarting Windows did the trick. Another caveat - do NOT do anything while Zune is updating your Windows Phone, I got a BSOD.
I would say that is your particular computer. I usually have many programs open and working when I plug my phone in to Zune. Internet, Outlook, Word, Terminal window, TV (WMC). Never had a bsod on either my work or home computer while running zune or updating.