3. I hear that NWN2 will bring NWN up to Dungeons and Dragons 3.5 version rules. Is this true, and what unexpected obstacles has changing the core rules created?

This is true - NWN2 fully supports the 3.5 rules. All the rules changes are spec’d out now and are in the programmers' queue for implementation. NWN did a great job of converting 3rd edition to computer game form, and so the original game has put us in a great position to update the game to incorporate the new rules. The news on this front is refreshingly boring because there haven't really been any obstacles in this arena so far.