syrinx writes "Peter Jackson, New Line Cinema, and MGM have agreed to work on two new movies: a film adaptation of J.R.R. Tolkien's 'The Hobbit', and a further sequel. From the article: 'The two Hobbit films ... are scheduled to be shot simultaneously, with pre-production beginning as soon as possible. Principal photography is tentatively set for a 2009 start, with the intention of 'The Hobbit' release slated for 2010 and its sequel the following year, in 2011.'"
Not sure if it would be possible to nab Ian Holm
as Bilbo, but here's hoping.