While this isn't directly related to KotOR 3 news it is related to the current state of LucasArts. I found this info on LucasArts while perusing an MSNBC article about games being released for the Xbox 360...
Good news that LucasArts is doing better since their management shakeup. Unfortunately it only mentions something about an Indiana Jones game being released in 2007. I couldn't care less about that.
But... they have been hiring 200 developers, engineers, and animators for work on games for the new generation of consoles coming out starting with the XBox 360. Hopefully that means that KotOR 3 will be factored in there somewhere. But I'm left wondering that if they move forward with producing KotOR 3 are they going to use an outside developer like Obsidian or will they do it in-house? And if MacLeodCorp's posted link to the GameBanshee forums posting is accurate then Obsidian hasn't even been contacted about doing KotOR 3.