Update: Looks like O2 has denied the rumours. Gizmodo pretty much sums things up. This is almost worse than waiting around since 2004 for the thrice cursed thing in the first place...
Update: Just got hit between the eyes with a brick, O2 never rolled out an EDGE network in the UK. If this really is true, then the European/UK release of the iPhone has to be 3G.
Update: The Register is trying hard to stop the speculation with the suggestion that "... any UK deal is not beyond the round-of-golf stage", but I doubt that will stop anyone else talking about this incessantly for the next six months.
Update: Looks like Amazon.co.uk slipped up and posted an estimated release date of 1st December at a price point of £329 on their site. This has now been removed and replaced with a less interesting page. Nothing about a carrier though, Apple really are playing this close to their chest, as usual...
Update: The latest rumour is that a iPhone has been seen in the wild in the UK on O2. Hmm, who do AT&T users end up roaming onto when they're in the UK?
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