There are 2 new rumored iPhones. One suggests a newly designed case with a 'teardrop' design and improved internal components. Another suggests simply upgraded components inside the same (at least from the outside) iPhone 4 casing. Then some people suggest both will be launching, one at a higher price and one at a lower price. However, people cannot decide which they believe will contain the higher price tag. Personally, I'm buying the new, higher priced iPhone regardless of it's outer design (although I would prefer it to be a new 'teardrop' design with a rumored 4" screen!).
Only time will tell if the rumors are correct (or rather which rumors are correct). Fortunately, we only have to wait one more week to find out!