Rumors have been flying for quite a while that Microsoft might be working on an updated Xbox 360, and Engadget claims to have the first photo of the Zephyr project, a second X360. While there if no official announcement, or confirmation, the new version seems to sport an HDMI port for dedicated 1080p support. The article goes on to say that it will feature the previously revealed 65nm chip (quieter, cooler, smaller) and will come with a 120gig hd for all those HD movies. No specific prices, release date, or what the upgrade program might be for those first 9 million X360 owners.