Apparently Peter Jackson and New Line have set aside their money squabbles and have signed Jackson to produce ‘The Hobbit’ and a sequel.
Not sure what is meant by a sequel. I’m guessing they’re breaking it into two movies, which is fine by me, it’s a pretty big book. Someone more Tolkien-literate than me can correct me, but I don’t think he wrote a book about events between The Hobbit and Fellowship.
The films go into production in 2009 with The Hobbit coming in 2010 and the sequel in 2011.