Ok, so we've had a ton of misinformation on this, on both sides.
The ND-TMC10 (RDS/TMC Traffic Tuner) is not officially supported by Pioneer on any units except for the X930 and Z130.
However, in my testing, it does work on a Z120/110 X910/920 after the software upgrade.
Also, the traffic tuner is an external box, it's not built inside the Z130.
Updated 4/18/2011
bummer.
Lets just all let this go for now but I think I know what the final answer will be.
Hey Remember when the Z120BT manual was leaked on this forum? Remember the bulls*it response they gave claiming that the leaked manual was only a concept manual and wasn't genuine? The clown fest that is Pioneer continues. 
Yea, I'm totally going to sell my recently purchased/installed z120bt to buy the new z130bt. Lame.
edit: just read this post:
good news.
* IF TRUE...*
Then Pioneer has ONCE AGAIN abandoned thousands of existing users in favor of promoting the newer products.
They did it when they refused to release a fix or replacement unit for the critically-flawed Bluetooth unit for the D-Series, instead dumping remaining product at a discount in advance of the F-Series announcement.
They're now leaving X- and Z-Series owners without a live traffic or integrated traffic solution after Jan 2011 unless one somehow uses this Aha thing, buys an iPhone and data plan, and maybe even some sort of special cradle??
Not to mention the fact that the value of the existing units just took a nose dive.
Unless there's SOME sort of replacement traffic option on the horizon for these expensive units (e.g., HD traffic-ready tuner, XM NavTraffic tuner?) then this is maor major bad juju @ Pioneer and represents yet another abandonment of existing customers in favor of newer more expensive units.
Go Kenwood!
Is the tuner integrated into the Z130 or not? In most of the marketing it says "integrated", but to me it sounds like they are just simply throwing the external tuner in the box.
Depp, the Smart Cradle is not for the AVIC, it's for people who want to use their iPhone as a navigation system.
There are many right ups that claim the traffic tuner is included with the 130 so that indicates it is a separate add on just like the one for the 930.
I'm sorry I think that these higher up marketing pukes are just feeding everyone a line of bull pucky. They would essentially shoot themselves in the foot if they did this. I for one will dump my receiver and move to Alpine or Kenwood if they pull this crap. We have confirmed instances of the new TMC working with the new software on the Z. I think the head marketing stiffs are talking out their back sides. If it works which we have heard from multiple sources that it does then Pioneer disabling this would be out of greed.
The traffic tuner is an external box and is included with the Z130 and optional with the X930.
Info on Clear Channel traffic solution
and here
Here's what I'd guess is going on with this at this point...
The Pioneer people on their Facebook page said the new firmware would be backwards-compatible and released for the X920 and Z120. They also (initially) said the new traffic tuner would work with those units.
It then occurred to them "Oh shit...how will we be able to sell the new units if we don't hold something back from the older ones??"
So their business development and marketing people are trying to roll back the admission that the new stuff WOULD work with the old stuff.
I wouldn't be surprised if they go so far as to deliberately handicap the firmware to detect when it's running on older units and disable the ability to drive/use the new traffic tuner accessory.
Luckily, there are GOOD hackers on this site... ;O)
Very shortsighted of them if this is what they are doing. They stand to make more money if they don't cripple it and here is my reasoning.
Those who bought the old Z units seem fairly willing to shell out the $$ for the traffic unit plus the cost of the software update. 120 + 200 on the low side. Some of us may do this each year to get the updates. Now if they cripple traffic there is no way I would go out and get the Z130. In fact that is enough bad will that I would move to another manufacturer. Now I know that game; been playing for a long time. Manufacture's are fully within their rights to innovate and have new features in new units that are not backwards compatable. This is fully acceptable. What us not acceptable is Pioneer continuing to sell a unit whose service will be no more in a year and offering no recourse through an alternate service device. We all know and it has been confirmed that the TMC traffic unit is fully compatable with the Z with year 11 firmware. For Pioneer to disable this compatibility this late would just be arbitrary and greedy not to mention ne'er impossible based on their long development cycles.
Another thing to think about. If this whole press snafu with their facebook guys was so bad how come they have not redacted their statements? I thought that these higher up marketing muckity-mucks were concerned enough about this to make this known on one of Pioneers main outlets to the public. My thought is they never will and we will find all is well in spring when this all comes out.
I wouldn't be surprised if they go so far as to deliberately handicap the firmware to detect when it's running on older units and disable the ability to drive/use the new traffic tuner accessory.
Luckily, there are GOOD hackers on this site... ;O)
That is exactly what I am concern about if we don't shut up and stop talking about this. I think we need to let this die until the new units and software arrive. I already know what the answer is so I am not concerned at this point.
Well they redacted on their facebook page. Im pretty sure I know what they are going to do like VBLUE has said. Just posting this so we can get a chuckle in a few months when this plays out.
Someone needs to revamp their marketing department... 
Ok folks new info on the traffic tuner compatibility with Z110/120/X920 units once they are upgraded with the Z130/X930 software do out this summer. The response from Pioneer is now that they do not officially support the traffic tuner with the previous units but they are not saying it wont work. Just that they don't officially support it on the previous units. So, what that means is that we will see for our selves when the new tuner and software upgrades are released. To me, this is better news.
Any updates on this subject. I recently saw the spec for ND-TMC10 in the Z130BT and was a little annoyed being that they made us buy XM service, bailed on that, then MSN closed shop and announce nothing to replace it. What you say is good news but would love to hear some more reassuring news!
I think selling software updates is more profitable then sinking gobs of money in RND and manufacturing.
Ok folks new info on the traffic tuner compatibility with Z110/120/X920 units once they are upgraded with the Z130/X930 software do out this summer. The response from Pioneer is now that they do not officially support the traffic tuner with the previous units but they are not saying it wont work. Just that they don't officially support it on the previous units. So, what that means is that we will see for our selves when the new tuner and software upgrades are released. To me, this is better news.
Any updates on this subject.
Yep, we'll know next week. That's all I can say right now.
I E-Mailed Pioneer today. i was pretty surprised how quickly they responded.
Thank you for contacting Pioneer Electronics, Inc.
As of right now the ND-TMC10 will not work with the AVIC-Z110BT, or the Z120BT. Unfortunately those models do not have the hardware to support the traffic service.
Thank You,
Kevin
Customer Service Representative
Subject: Feature and Specification|B00002|6127600000[#1351013]
I currently have a AVIC-Z110BT upgraded (so basically a Z120BT). with the ending of MSN direct service next year i wanted to know if the ND-TMC10 would be made available to AVIC-Z110BT as a replacement for traffic info?
Thanks!
Could be just BS
Yes, the "official" answer from Pioneer is that it will not work. This has been discussed to death.
HOWEVER, next week, I will be able to try it personally.
Any word on functionality Jason?
Any word on functionality Jason?
Yep, it works! http://avic411.com/index.php?/topic/31401-new-traffic-tuner-will-work-on-a-z110120-upgraded-to-z130/