Paul Thurrott, co-host of the popular podcast Windows Weekly with Leo Laporte, mentioned the new 360 in the latest podcast, specifically at time marker 27.55. He clearly states things such as (from article on Xboxic):

• A new 360 will be released in late 2007
• The new 360 is the only way that you can benefit from the upcoming IPTV service
• A bigger Hard Drive will be bundled with the new 360
• The new 360 is pretty likely to be quieter

Now this is sure to piss off a lot of people. They announce this huge IPTV service and you need a new version of the console to use it? Take this as rumor for now, although it should be noted that Thurrott DOES work for Microsoft.

No matter what anyone says, it’s pretty hard to deny that a new version of the Xbox 360 is coming with an HDMI port and a larger hard drive. It’s just a matter of when.