While we're going to categorize this as a rumor until we get a better insight upon the release of the trailer for Grand Theft Auto IV on the 29th, it definitely is worth consideration. Apparently, word on the street is that GTA IV will be taking place in New York City and have NYC stylized music. When we first got wind of this, the first thing that popped into our heads was, "Uh, wasn't the Liberty City from Grand Theft Auto I, GTA III, San Andreas, and Liberty City Stories supposed to be at the very least an homage to New York City (with a hint of New Jersey)?"
If you look at the map for Liberty City from GTA I (pictured above), it's even more apparent. Or this could be a completely new direction for Rockstar, where instead of doing fictional places that are inspired by real world locations, they cut the middle man as it were, and just use the actual city. Either way, we could see a return to Liberty City, or Rockstar's rendition of the real life counter part. Which would you rather play in?