All rumors start with a fraction of truth.
True: Yes, 1.1.3 will come out. Eventually.
And if it does come out as 1.1.3, then who cares (I want some new functionality within a year of release (ie MMS, cut & paste, Flash, send texts to many, etc...). It will just be the typical bug fixes and no real enhancements we want. If they were, I would expect as someone said previously it should be a 1.2.0 release.
Has anyone else been having lots of lock ups when docking or removing from dock for charging at night? I have two iPhone in the family and they sit near each other. I reported the bug to Apple about 4 times now and ever hear anything. The problem started when the second iPhone was introduced and I think it is a Wifi connection issue.