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Here's more info on that Dancing Link rumor:

“Saturday, March 7th: When you expect it least, it hits you that much harder. While attending a rather small press-conference in Tokyo, IGN.com was able to get a first glimpse into what looks to be the next home-console Zelda-fame for Wii. There wasn´t any talk about the game, yet, instead Eiji Aonuma showed a rough draft of a character that appears to be Link, without his hat. Though nothing has been said, the game´s tentative title was revealed on said draft: The Legend of Zelda: Odoru no Link. Or in proper English: Dancing Link. We´re not sure yet what to think of this first appearance of the new Zelda-game, but the series hasn´t disappointed with past entries, so we´ll be keeping our readers up-to-date with all new information about this game. For now, take a look at the sketchy first draft of Odoru no Link.”

source: http://www.perezstart.com/retro/new-zelda-game-revealed-zelda-odoru-no-link/1688/