Yup...things happening rather fast here, but quite the sordid scandal, it appears.
The fuller story -- both confirmed items, and items that are unconfirmed, but largely considered to be true -- as best I can piece it together at present.
It starts with Neil Heywood, a British businessman working in Chongqing. He had close ties with Bo's family, including helping his son get into a prestigious school in the UK (confirmed). There are also strong indications that Mr. Heywood engaged in an affair with Bo Xilai's wife (unconfirmed), although the official gov't line at present seems to be that there were 'economic issues' (significant debts) behind their falling out.
To add to the intrigue, the company that Heywood worked for was set up by British ex-spies (unconfirmed, but claimed by several western media outlets), leading to contemplation that Heywood may have been more than 'just a businessman'.
Anyway, Heywood was found dead in his apartment, the death ruled accidental due to alcohol poisoning after drinking too much...but no autopsy was done, and the body was cremated by Chinese authorities, leading to questions about a cover-up. But lacking evidence, not much was done.
Fast-forward in time. Wang Lijun somehow acquires evidence regarding Heywood's murder, and either out of a desire to see a wrong righted (less likely) or out of a desire for self-preservation when he sees that he's fallen out with Bo Xilai (more likely), he contacted the British Consulate and made an appointment to visit them (fact). However, for some reason (possibly the authorities had discovered his plan, and were seeking to stop him?), he never showed up at the British Consulate, and instead fled to the American Consulate, where it has now been confirmed by the Chinese media that he made the claim Heywood had been murdered by Bo Xilai's wife.
Which brings us up to the present. Bo Xilai has been stripped of all powers, and is under investigation. His wife, Bogu Kailai, has been arrested, along with her orderly/bodyguard. The Chinese authorities have now ruled Heywood's death a probable murder, and are in communication with British authorities over the case.
Still no word on the gunshots in Zhongnanhai, but the Chinese media is
openly reporting now on both Bo Xilai and his wife. Again, this is purely my own speculation, but I suspect that Heywood did indeed have an affair with Bo's wife, which led to them engaging in mutual business activities; then either the romance or the business turned sour, putting Bo's wife in a precarious position (and possibly that of a woman scorned).
Anyway...China's all abuzz right now, my wife has gotten at least 20 messages on her phone so far reporting various items related to this news, and it is the main topic of conversation in our office.
ETA: Wang Lijun is also in very serious trouble over this...for revealing internal political issues like this to the U.S. embassy, instead of the Beijing government, he's been branded as a traitor by the Chinese President, Hu Jintao. That, piled on top of existing criminal charges that he was already facing before this started, seems to pretty much spell the end for his career, also.
ETA 2: A fairly recent pic of Bogu Kailai