1. 3.2 MP Auto-focus Camera – one of the biggest complaints about previous iPhones was the lack of quality from it’s 2 MP sensor, this should all change with the introduction of Auto-focus. While many feel that 3.2 MP is already very dated, I see it being adequate for my needs. [Screenshot]
2. Digital Compass – a magnetometer in the iPhone can be used to show exactly which direction you are pointing your phone. Could be a handy addition for hikers etc, not to mention app integration. [Screenshot]
3. Faster CPU, GPU, and more RAM – It seems likely the iPhone will receive quite a significant speed bump this time around. Expect the latest ARM Cortex-A8 processor, which has been used in the brand new Palm Pre. Also expected is the use of the latest Imagination GPU, and twice the RAM over previous models. Quite how App marketing will work I’m not sure, as there are bound to be Apps made that will require this hardware to run them.
4. iChat video – A feature that was heavily rumored before the iPhone 3G was released, stories have died down a bit since then, and have only been shown in fake renders of a new case. For me this is one of the least likely hardware additions. But it would be nice to see. I imagine if it did happen, we’ll see Phil Schiller calling Steve at home to wish him all the best! [Screenshot]
5. Dedicated Camera Button – In some of the leaked case pictures there appears to be a notch in the bottom right corner. Many believe this will be used as a dedicated shutter button for the camera. Anyone who’s used the current iPhone for taking pictures will know, the touch screen button is sometimes fiddly. [Screenshot]
6. Four models inc. 16GB/32GB – There have been rumors of 4 models ranging from 4GB to 32GB. If true, I can see the introduction of an iPhone nano using the features of the existing iPhone 3G, but in a smaller housing. This could come in 4GB/8GB versions. Then we have the newer iPhone, with video recording, digital camera enhancements, digital compass etc coming in 16GB/32GB variants. [Screenshot]
7. Light up Apple Logo – Now this is something I’d love to see, akin to the Apple laptops, a light up logo would be uber cool. Imagine if they even integrated it as an LED flash for the camera? Now we’re talking!

Well that pretty much all of the rumours taken care of. I just got this interesting picture form the UMPCFever.com website.

The rumour mill just keeps on rolling, and I supspect it will do until we find out tonight. As usual, the live action starts at 6pm BST here in the UK.