Apparently during the strike, Michael Bay wrote the general outline and much of the script for Transformers 2, so he could make the release date of June 26, 2009. He stressed he wanted to make the date, so he wrote what I'm guessing is the general story and action scenes of the script. He also said he writes much of his own movies. Other writers will be coming in to finish the sequel's script.
Barring an actors strike (their contracts expire late June, 2008--don't count on it happening, though), it looks like they'll be able to start production soon. The visual effects look amazing, according to actor Shia LeBeouf and visual FX supervisor Scott Farrar. There will be more robots in the film, too. But no dinobots. "Me Grimlock not happy about decision!"
My thoughts: Bring it on! Transformers 2 was the best action movie last summer, along with Live Free Or Die Hard. The film had some issues, like the extended bit with the glasses/All Spark map, but I felt Shia really gave it life. I also thought the visual FX were the best in years, and made me feel that I'm not too jaded about CGI. I hope the movie wins an Oscar for FX; it's already done well in other FX awards.
Source: Superhero Hype!