OK...before I put these great methods into action...one last question-how about water content in the raw or thawed Zuchinni...I'm sure I should drain excess water off but wwhat about drying w/ paper towels..?
Thanx again for your patience!

Squash, summer
(zucchini, yellow, white scallop) Select young squash with small seeds and tender rind. Wash, cut in 1/2-inch slices. Water blanch 4 minutes. Cool and drain. Dry pack with headspace.

To dry pack, place the blanched and drained vegetables into meal-sized freezer bags or containers. Pack tightly to cut down on the amount of air in the package. Leave 1/2-inch headspace at the top of rigid containers and close securely. For freezer bags, fill to within 3 inches of top, twist and fold back top of bag, and tie with a twist tape or rubber band about 1/2- to 3/4-inch from the food. This allows space for the food to expand. Provision for headspace is not necessary for foods such as broccoli, asparagus and Brussels sprouts that do not pack tightly in containers.

Also there is a member here that does ALOT of preserving of foods, his name is CanMan and he may jump in with the absolute correct method. I think if you blanche squash in steam or water it will be way too moist for freezing for bread. I really would try the dry method in the oven. It still might loose water, but in a single layer you can break it into small amounts for using in breads. The other way it would be too moist. Unless of course you wanted to use a pureed zuccini to make into the bread.

at this time of the year - I just bake the zucchini breads and muffins and freeze as well

You folks are all the best!
Its still a bit too warm to be baking here in the Northeast & too fun outside...I'm going to give each method a try & go from there!
Thanks again!
Eric