Refreshed internals, lower price point possible.
True Video iPod Soon? [Updated]
Meanwhile, ThinkSecret has gone back and forth on the possibility of the device coming before the new year. While quoting "reliable" sources, Engadget has repeatedly been off the mark with their Apple phone rumors, which may give insight into how good the site's sources are at Apple (claims of the iPhone in August, fake 'iChat Mobile' pics).
Update: Moved to Page 1 due to interest