Yeah, that's apparently what's going down -- the iPhone will be over the Atlantic "in time for Christmas," according to The Times. That is, assuming they can quickly localise its dialogue for easy manoeuvring in the UK market, aye guv'na? Oh, and Apple still has to sign the paperwork, too, so it isn't necessarily over.
P.S. -Naw, doesn't necessarily mean Vodafone is out -- remember, they're so freaking all over the place Apple might just get Vodafone distro somewhere else in the world.
[Thanks to everyone who sent this in]
Update: The piece also notes that Orange is the front-runner in France. As a reminder, German paper Rheinische Post reported that T-Mobile's locked down the iPhone for Deutsche release. Apparently it'll land for €450 (about $612) on November 1st. More as it develops. Congratulations, Europe, now you too can experience absolutely insane consumer hysteria that is an iPhone launch! Thanks, Chinman.