So does that answer the question?

Of how Elijah wood and Ian Holm and possibly other of the Lord of the Rings actors feature in the The Hobbit.

According to a new interview with Elijah Wood, it seems as if they will be working on a sort of framing device. Using the concept of "There and Back again", the book that Bilbo is writing at the beginning of the The Fellowship of the Ring, and that Frodo/Sam Finish at the end of the Return of the King. I had wondered how exactly they had planned to include these actors, and I can't help but think that it may not be such a bad plan.

It also could explain some of the other oddities we've come to know about the movie(s). Effectively showing it two different ways, one how Bilbo has written it, and then 'The True story'. This isn't much of a divergence, since Bilbo omitting information was used in the stories themselves.

It also mentions again a new character named Taurial, who seems to be some sort of elven maiden in Mirkwood. I've started to see this name brought up a lot lately, when previously we repeatedly saw the name Itaril and "Female Elf Warrior" next too it.. Is it possible that Taurial the elven maiden has replaced Itaril the Female Elf warrior? or are we simply going to get stuck with both of them?

I think that beyond additions such as Itaril/Taurial, the filmmakers are going out of their way to play up as many links between the two film series. Thats probably an extremely good idea in order to minimize the audience alienation felt when they go in expecting to see characters that are impossible to include in the Hobbit story itself. But as a framing sequence it will work out much better.

Of course, this could be incorrect and Elijah Wood is simply not being let in on exactly what Jackson/Fralippa are doing. I suppose we will find out December of next year though.