According to the anonymous report... the new "iApp" is called Garage Band and is a music creation tool, and should bundled with "the new group" for $99. (ed note: is this the Consumer Audio App with ~3GB of audio clips?)
Also, coming from the source is claims that the new mini iPod is "credit card sized" and costs $249. A cheaper version is also reportedly in the works as well, but no details of that one is known. One dubious claim from the source, however, claims 10,000 songs in the $249 iPod... which at current bitrates would imply 40GB of storage.
For this reason, and the unknown reliability of this source, this is placed on Page 2, but is of potential interest with the confirmation of a "GarageBand" product.
Update: A couple of unconfirmed hints suggest that the low-end iPod will be 15GB (from 10GB). If so, could help further differentiate the low end iPods from the rumored "mini" iPods. Wishful thinking? or not? We'll see tomorrow.
Updated Claims:$149 4GB Flash Mem iPod Mini-1000 songs, $299 15GB Old iPod, $399 20GB Old iPod, $499 40GB Old iPod
GarageBand info: 54 tracks, 2000 built-in Loops, 200 Instruments, 15 Guitar Amps
iPhoto: Can now scroll through 25,000 images like Butter