So the Walmart thing is still going on. Bloomberg today confirmed (it's hard to keep Walmart's employee's mouths shut it appears) that they will indeed be pushing the iPhone. Interestingly and contrary to other reports, they do say there might be a $99 model:
Analysts say Apple may offer a discontinued 4-gigabyte version through Bentonville, Arkansas-based Wal-Mart and sell it for $99. Apple currently sells two models at $199 and $299.
They go on to quote Shaw Wu: