Several articles in mid-September reported that MGM had announced it was definitely making the Hobbit sometime in the next few years and that the studio was attempting to lure PJ back as director:
here. There was little mention of the earlier dispute over rights: we were all left with the impression that these problems had been settled.
Well, not it looks as if we'd better not hold our breath waiting for this to happen. An article in today's Hollywood Reporter is far less optimistic that the movie will be made anytime soon:
MGM May Not be Making the Hobbit. According to the Reporter, none of the legal issues had been settled. Attorneys from MGM and New Line are still locked inside a room trying to reach agreement. Whether or not you'd like to see a hobbit movie, that won't be happening until this mess is straightened out.