The Wal-Mart/iP3G rumor has been swirling for months now and the latest tid-bit states that Wal-Mart will indeed sell an iPhone3G, but it’s going to be a 4GB version for $99 with a two-year agreement. Plausible? Sure.

There is no reason why Apple wouldn’t want to sell more iPhone’s and a national retailer like Wal-Mart could dramatically help. The original iPhone had the same 4GB storage capacity and it’ll will hold a few videos, along with some music, just fine, but don’t expect much more. People buying the iPhone at Wal-Mart probably don’t care too much about storage capacity anyways. They probably just want in on the best selling handset’s action. What’s to say that Wal-Mart will not sell the standard versions anyways?