Four hot rumors about the upcoming iPhone III

The Third Coming of the iPhone is forthcoming, and along the way eagle-eyed fanboys are spotting clues in its developer's code pointing to innovations that may lie within.

We found a quartet of enticing possibilities — rumors all, so don't make any steadfast plans involving any of this — but that only makes this scuttlebutt slightly less enticing:

1. 3.2-megapixel camera. Market sources say Apple's ordering up boatloads of the sensors, bigger than the paltry 2-megapixel sensors populating today's iPhones.

2. FM transmission and receiving. Not only could you listen to FM radio, you could transmit whatever your iPhone outputs to any car radio.

3. Video editing. Hidden in the beta version of iPhone OS 3.0 are scrubbing and clip features, telltale signs of video editing facilities.

4. Faster Wireless-N Wi-Fi. The upcoming iPhone's radio specs support 802.11n, much faster and more powerful than the wireless-G (802.11g) Wi-Fi in the iPhone 3G.