Xoanon here,

My Buddy Joram has chimed in on his website with a Hobbit Hole Set report:

Here's the scoop on hobbit holes. "All the hobbit holes are in, most of which are human size (ie, 2 meters and rounded circular). The holes are part of the hobbit houses, all of which are being built in the studio."

Want to know what else the New Zealand army is doing while not being extras? They are actually hard at work on other projects! The most interesting being this:

"The army is building an actual bridge to be used during filming!"

Other projects that are already in motion are the following:

" A large pond is being constructed along with a road into the village. "

The most revealing bit of info is this, which definitely gives away a scene that will be filmed:

"A large tree is being prepped for use during the party scene."

hmmm looks like my Xoanon Rants are right on the button. (Told you I was Steven Spielberg!)