I just read this a few hours ago. Sadly, it appears Peter Jackson may not get to make The Hobbit after all. What a shame, especially considering what his email to Theonering.net states about the nature of the Fellowship lawsuit. The other thing I found interesting was the reference to another movie - a prequel to Fellowship. A Silmarillion tale perhaps? I initially read this at IGN.com, but posted what the link there led to: New Line: "would no longer be requiring our services"