P.S.- Businessweek also says a new iPod Touch with a higher-resolution screen and a revamped version of iTunes are due tomorrow, but like, duh.
Update: And just to add to tonight's rumorfest, the Wall Street Journal now says Apple will in fact announce 99-cent TV show rentals from Fox and ABC tomorrow as well. ABC seems like a obvious partner, since Jobs is on the board of corporate parent Disney, but the Fox angle is a little more interesting: the WSJ says not everyone at Fox is so happy about the deal, and the network's offerings will be limited to shows that it both produces and broadcasts. That means nothing from Fox's cable networks like FX, and no shows like American Idol to which Fox doesn't hold all the rights. So why the partnership at all? The WSJ says it's because News Corp wants Apple's help with the iPad version of the WSJ itself and other digital news projects. Clever, Rupert -- clever.