Yep, 100% positive that PSP wide worked without transcoding. I just sync'd two full movies on my Zune in less than 60 seconds. I had the task manager open and noticed that when I was syncing a file undrer "5th gen Ipod" the zune would start an encoder process. No process was started under PSP wide.
Here's the tech specs for what Zune supports:
Windows Media Video (WMV) (.wmv) – Main and Simple Profile, CBR or
VBR, up to 3.0 Mbps peak video bit rate; 720 pixels x 480 pixels up to
30 frames per second (or 720 pixels x 576 pixels up to 25 frames per
second). Zune software will transcode HD WMV files at device sync
MPEG-4
(MP4/M4V) (.mp4) Part 2 video[4] – Simple Profile up to 2.5 Mbps peak
video bit rate; 720 pixels x 480 pixels up to 30 frames per second (or
720 pixels x 576 pixels up to 25 frames per second). Zune software
will transcode HD MPEG-4 files at device sync
H.264 video[4] –
Baseline Profile up to 2.5 Mbps peak video bit rate; 720 pixels x 480
pixels up to 30 frames per second (or 720 pixels x 576 pixels up to 25
frames per second). Zune software will transcode HD H.264 files at
device sync
Why PSP wide works but Ipod 5th gen doesn't work directly; I have no idea.