It seems that the rumor mill won't be silenced... But this one seems to be from a trusted source.

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The rumor has it that PCS Type Review Certification Board, which certifies handsets for use with carriers such as AT&T has approved upcoming iPhone model and that too in FOUR capacities i.e 4GB, 8GB, 16GB and 32GB as compared to current 8GB and 16GB model. This even increases the credibility of the rumor about a $99 iPhone this summer.

This rumor game has been driving the people crazy since many weeks for now, especially as WWDC keynote gets closer. It has become hard to understand what to believe and what not!

Hope that all this chaos soon ends with the WWDC

http://www.modmyi.com/forums/iphone-...-4gb-32gb.html