According to reports, the PTCRB has tested and certified four new iPhone models for use on GSM operator networks. The four models have four different storage capacities, ranging from 4GB up to 32GB.

If the reports are true, Apple is likely differentiating the four models not only by changing the amount of flash memory. Previous leaks have indicated that Apple plans to offer modified software on each model to allow different levels of functionality based on the hardware and price of each device.

More photos of iPhone OS 3.0 have been released, this time from a user in Hong Kong who claims to have seen a prototype. The images aren't the best quality, however they confirm many of the recent rumors swirling around the upcoming model.

Among other things, the pictures demonstrate digital compass, voice recorder, horizontal messaging, and MMS functionality (video and photo messaging). Many of the images also show details about how auto focus will work with the new higher-resolution iPhone camera.

Live video iChat on the iPhone may be something we would expect from Apple, but is the timing and technology ripe for this functionality to come out this summer? Some reports are reading into AT&T network upgrades to 7.2 Mbps as a sign that they are bracing for more bandwidth demands from their iPhone subscriber base, and that one of those demands could be live video chat.

The longer AT&T can deliver what Apple needs for its hardware, the longer the company stands to profit from an exclusive arrangement to offer the iPhone on its network. Other leaks and data that point in the direction of a front facing camera on the next generation iPhone have also surfaced.

Could a healthy smartphone rivalry turn into all-out legal war between Palm and Apple? The Palm Pre has been found to sync effortlessly with Apple's flagship software iTunes by tricking the software into thinking it's an iPod.

The Pre is due for release on June 6th, and Apple is widely expected to release the next generation of its iPhone later this summer. Apple watchers are waiting to see what response, if any, the company will make to the revelation concerning the Pre's iTunes syncing capabilities.