$999 without contractBS
AT&T stores, even franchise stores, are still fairly feudal in nature. Managers are willing to go off script. As in the case that many AT&T store managers were compiling secret waiting lists, which became public and SJ fired of some email/memo stating that is a no-no. AT&T is not Apple, and AT&T stores are not ran like Apple retail. Walk into an AT&T corporate store and you'll get what I am saying. Obnoxious reps who are paid on commission so they are always trying to upsell you their crap. There will probably be unscrupulous store managers who try and take advantage of the iPhone, but not too many.
Store managers, at this point don't know JACK *****. Trust me. Apple doesn't even trust their own retail stores with information. I know. Apple corporate hasn't told AT&T corporate store managers anything we don't already know. As soon as they do, it will be leaked, so I'd imagine the details will come out when Apple is good an ready (presumably they will want to control the message, so I can imagine some small party of the WWDC keynote recapping the iPhone and explaining a few things before they move onto Leopard).