• 600 MHz Samsung ARM processor
• 256MB system RAM
• a 3.2-megapixel camera with autofocus
• 32GB of storage
• a digital compass
• FM

These specs were submitted to a rumor site by someone who claims to have a friend inside Apple manufacturing partner Foxconn who has handled iPhone “model MB717LL 9.” As such, they should be taken with a grain of salt, if not an entire salt flat.

That said, the rumors do seem reasonable. A 600 MHz chip is a nice improvement over the a 400 MHz part in the current iPhone, as is the doubling of RAM to 256MB. FM transmission and reception capabilities have been rumored before as has the compass. What’s missing, however, is an improved battery, a better GPU–perhaps the PowerVR SGX that’s been rumored to be heading for the device, a new, more elegant housing less prone to those hairline cracks that seem to plague the current one, and–in a perfect world–an OLED display and a second front-facing camera for video conferencing. Of course if OS 3.0 proves to be even a third as robust as Apple claims, we’ll be so enamored of the device we might not notice any of those things are missing.

Also making the rounds today are reports claiming iPhone 3.0 will support on-board video editing. Seems there are some resources in the latest beta of the OS suggesting that video capture and manipulation will figure large in the next device–things like “UIMovie Scrubber Editing Right,” “UIMovieScrubberMaskLeft” and whatnot. Now, while these resources could be pointing to something else entirely, it seems plausible that they are referencing some sort of video tool (iMovie Mobile? iMovie Light? iMoviePhone?)–particularly when considered with the MobileMe “Publish Video” feature also found concealed in the 3.0 beta. That said, no mention of video editing was made during Apple’s recent iPhone 3.0 event. Perhaps Apple (AAPL) hopes to keep it under wraps until the device’s official debut. Or perhaps there’s nothing to keep under wraps in the first place.