QUOTE(doubrown @ Nov 12 2007, 16:02)

Firmware 1.10.05 shipped on my player. I downloaded firmware 1.03.04 and installed, but the ZEN wouldn't even start up so I went back to 1.10.05. Hopefully, Creative fixes this one soon.
Yes, 1.03.04e was the version I had to put on mine to make aac work correctly.
Are you sure the downgrade didn't work? Did you try resetting the device (with a needle or a tip of a pen)?
The later version not supporting aac is a known problem, but Creative as usual sit on their ass and pretend not to listen instead of providing technical support.
EDIT: I saw your post on the epizenter.net site - there's a lot of misinformation there. Did you try an itunes aac file? I think it's all aac files that don't work on the new firmware, not just Nero.