The Rare that Nintendo sold was not the Rare that produced Banjo, golden eye and all the other fantastic games. At the point of sale many of the major staff had left to join other teams or to make a new studio (the timesplitters team i believe).

It was a minor loss to nintendo,and not the massive gain that MS seemed to think it was. So far, after the N64 only Viva Pinata has shown true signs of the old rare, and even then, the sales of the title were so bad another 2 key staff left (to produce wii games is the rumour), so on that bases, i see very little to get excited about with the next banjo, I would guess that very few of the original Banjo team will have anything to do with it and afterall, didnt rare get pointers on their games from nintnedo themselves? somethink i dont think they can get from MS.

The team making Banjo Kazooie 3 is the team from the original game.

Yea i just read up on wikipedia, doesnt quite make sense to me tho, but we will see, It is suggested that it could be late 2008 before we see the game released.