Things are progressing more quickly now! We have a Bilbo!
Martin Freeman Confirmed As Bilbo!
I like Martin Freeman a lot and think he'll do a terrific job in the role.
The dwarves are being cast as well: The Hobbit Gets Its Bilbo—and Many Dwarfs! - E! Online
All this makes me want to go read the book again. For many years, I read it once a year, but I think it's been 4 or 5 years since I last read it. Feels like it's time again.
Now if the problems with the actors union in NZ can get cleared up, filming can start in early 2011!