I just saw in the Times (London Times, that is) that a two-film version of the Hobbit is in production in New Zealand! I am a HUGE LOTR fan! So, I am very excited to see these new films. Alas, they will not be released until 2010 and 2011 respectively.
It is being directed by Guillermo del Toro, who co-wrote the script with LOTR's Peter Jackson, who is also the executive producer.
See a video interview with del Toro here.