This report comes from the Official Star Wars Site!
Answered by: Rick McCallum

Will Yoda be computer generated again in Episode III, or will you go back to the puppet? Will we see him fight again?

I can't tell you about the fight scene, yet. He'll definitely be CG. We're not sure if he'll fight, but we'll do anything to challenge Rob Coleman (Animation Supervisor, ILM) and his team to go to the next level.