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

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

Other projects that are already in motion are the

” 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!)