The Wall St. Journal is reporting that Radio Shack will begin selling the iPhone for the holidays in New York City and Dallas-Ft. Worth and will roll it out to all of its stores in 2010.  Seperately, Radio Shack will be operating Target's wireless phone business or "store-within a store" so it is conceivable that they'll sell the iPhones at Target as well

"The Shack" has been rumored to carry the iPhone for over a year.