“We haven’t signed any actors up yet,” Jackson admitted. “We couldn’t do that until [MGM Studios greenlights] the movie.” He said that they’d love to have any actor that played a part in Lord of the Rings that has a role in The Hobbit as well. As far as we can tell, that would cast Ian McKellen as Gandalph and Hugo Weaving as Elrond. Ian Holm will doubtfully play Bilbo Baggins in the film since it’s a prequel.
Jackson admitted that they’re currently working through the film’s budget.