It has now been confirmed by video evidence:
[ame=http://www.youtube.com/watch?v=aRuG7nM2AMQ]YouTube - The View from the balcony - police and basijis VS people of Iran, Baharestan June 24.[/ame]
It's a grainy video and it's hard to tell what's going on but the gunshots are clearly audible.
I know the thread title is supposed to be the same as the article but this is a youtube video and the title is too long to fit.