Pegasus News is launching an iPhone App on July 11 to coincide with the launch of iPhone 3G. The app for the Dallas city guide will feature events, restaurants, drinks, Wi-Fi and garage sales, all searchable by the hour and by location. An interesting demo video is available here.

President Mike Orren says the iPhone 3G with built-in GPS is made for city guides. It knows where you are, so it can make default recommendations based on actual locations. The hours-and-location orientation also makes total sense. IPhone users aren’t planning their weekends; they want to know where they can have breakfast, when happy hours start and where they can go after hours, he says. “Now is the default.”

“Everything about it is about finding things today,” adds Orren. The only exceptions are going to be garage sales, which are mostly active Thursday through Sunday.

Orren also sees advertising opportunities, with Pegasus’ base of advertisers offered upsells to featured listings for $100 a month. Average Pegasus advertisers are already spending $1,000 per month. They are likely to include restaurants, bars and nightclubs. Coffeehouses may also be advertisers, since they are basically synonymous with Wi-Fi locations already featured on the service, says Orren.

Orren says the site is going to “go guerilla” in marketing the app. On launch day, the staff will be split up and will go to every Apple store and many AT&T stores, handing out free coffee adorned with Pegasus stickers. The stickers are courtesy of one of the site’s advertisers.