Pierce sends us this word that Kenny Baker will be back in the can for Episode III. Many fans remember that for Episode II the actor was replaced for the most part by a CG R2:

You may have already seen this... but I wasn't sure if you heard or not yet, as I would think it's generally assumed.

At a recent conference during the Megacon 2002 in Orlando, Florida, Kenny Baker said that he will be most definitely be returning to play R2-D2 for Episode III. I do remember there was some floundering controversy over R2-D2 being all digital in Episode 2. Perhaps this is minor, but it's news.