I have actually heard this "rumor" from 3 separate sources. 2 of which are basically clueless types of folks who just heard through the grapevine that it was happening. So I was pretty skeptical. Then I heard the exact same rumor from someone that I know to be VERY connected and VERY reliable. And I can tell you that the folks down at TDO DO believe this rumor.
I have heard NOTHING about what attractions/ shops/ potter locals are to be included. I have heard that Sindbad is history. Don't know anything about Posiden's or Mythos.
And the timeline is that construction will start very soon (like right after the Holiday Season) and they are aiming for a Spring 2012 opening.
Oh, and this is just my guess but I am betting it is going to just be the area from the arch just past Fire Eaters Grill to the current Hogsmeade entry arch by the train. That way they could use the temp bridge to get around the area and they will use the older bridge to access TWWOHP during construction.
But please keep in mind as of yet this IS still just a rumor.
TDO? I don't recognize that particular anagram, what is that?
And If they do start after the holiday season, that is to me TOO soon to start this expansion. Phase 1 hasn't even rubbed off its shiny new-ness yet and they are planning to expand already. They should wait AT LEAST until after the holidays of 2011 to start the expansion that way the in its current state it can continue to bring in the business.