At least some of the rumours were true. Walmart announced today that it will begin to sell the Apple iPhone on Sunday, December 28th. It will offer the 8GB model for USD$197 and the 16GB model for USD$297. Both will require a two-year service contract with AT&T or a qualified plan upgrade.
With some 2,500 Walmart stores to carry the iPhone, it is well on its way to ubiquity.
Rumours that Walmart would carry a cheaper 4GB model have turned out to be unfounded.