There are some on this board who know more specifics than I do; but here is what I've heard (for what it's worth):

Yes, an "is" will come out and it will probably be a 2009 model that is released in late 2008 - probably along with the first of two mid-cycle face lifts. It will start with a fully loaded E70 Sport then add some upgraded performance items. I hear the engine will be a twin-turbo V8 with ~ 410HP.

I imagine the third row would still be available.