Jackson can still make The Hobbit
Peter Jackson could still make Tolkien’s The Hobbit, despite falling out with the studio which commissioned him to film The Lord of The Rings trilogy.

Iraqi PM calls for crisis summit
Iraq’s Prime Minister, Nouri Maliki, has called for a summit of the nation’s main political factions in an attempt to break Iraq’s political paralysis.

Italy Probe Unearths Huge Iraq Arms Deal
In a hidden corner of Rome’s busy Fiumicino Airport, police dug quietly through a traveler’s checked baggage, looking for smuggled drugs. What they found instead was a catalog of weapons, a clue to something bigger.

‘Second Life’ Sex Program Spawns Lawsuit
Kevin Alderman didn’t bring sex to “Second Life.” He just made it better. The 46-year-old entrepreneur recognized four years ago that people would pay to equip their online selves - which start out with the smooth anatomy of a Barbie or Ken doll - with realistic genitalia and even more to add some sexy moves.

Google to Stop Web Video Rentals, Sales
Google Inc. (GOOG) is shutting down a service that sold and rented online video, ending a 19-month experiment doomed by the proliferation of free clips on other Web sites like the Internet search leader’s YouTube subsidiary.

Consumers Urged to Pick New DVD Format
People who own an HD DVD player can forget about watching “Spider-Man 3″ in high definition when it goes on sale during the holiday season. The movie from Sony Pictures will only be available in the Blu-ray DVD format. Likewise, people with Blu-ray players won’t be able to enjoy the action-thriller “The Bourne Ultimatum,” which Universal Pictures will release only in HD DVD.

Race Is on to Detect Dark Matter
In deep underground laboratories around the globe, a high-tech race is on to spot dark matter, the invisible cosmic glue that’s believed to keep galaxies from spinning apart.

Toyota delays next-gen Prius while GM inks deal with lithium-ion maker
It looks like those waiting for the next generation Prius to hit the road are going to have to hold out a little bit longer. Toyota announced this week that it would be delaying plans to bring its plug-in, lithium-ion-based model to market until 2011, as opposed to 2008, due to safety concerns over the company’s chosen battery. In very related news, GM has struck a deal with Massachusetts-based battery developer A123 Systems to produce flat lithium-ion batteries for use in upcoming plug-in electric vehicles, such as the Chevy Volt.

Surgically alters thumbs to better use iPhone
Thomas Martel, 28, of Bonnie Brae is a big guy. So he has a hard time using the features on ever-shrinking user interfaces on devices like his new iPhone. At least, he did, until he had his thumbs surgically altered in a revolutionary new surgical technique known as “whittling.”

NASA to Look Closer at Gouge on Shuttle
NASA wants to get a closer look at a troubling gouge on the heat shield that protects space shuttle Endeavour’s belly to determine whether astronauts need to repair the 3-inch wound.