Fans of Tolkien's The Lord of the Rings can rejoice that Peter Jackson is planning to produce not one, but two Hobbit movies in continuity with his Lord of the Rings movies. Yes, there are quibbles with Jackson's adaptation of LOTR, but honestly I don't think it could have translated to film any better than it was. Let's just hope he will be able to bring in the same cast from LOTR for The Hobbit. And I have no idea what he's going to do for the sequel.
From the official website:
The two “Hobbit” films – “The Hobbit” and its sequel – 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.
Fans have been hoping for this for awhile, and to whet your appetite there are some fan produced trailers on YouTube (see here and here for a couple).