Gizmodo is citing sources within Apple's iPhone software development group who were quoted as saying it is "highly probable" that iPhone 2.0 Golden Master will hit Friday. Golden Master is a development term that basically means it's a shipping product. In the case of the iPhone, that means it's ready for distribution via iTunes.

Apple had originally promised the release for June. iPhone 2.0 software will usher in the immediate availability of sanctioned third party applications.

via Gizmodo