Fantasia 2006 would be the third installment in the Fantasia series. Basically Roy Disney wants Fantasia to continue on as a tribute to Walt's legacy, even though Walt himself was against the idea of sequels. here are the updates that I've gathered on this film:
James Levine has been reinstated for the occasion to conduct new pieces of music (the adaptation of Youssou N'Dour music). He repotedly had already finished conducting a modern piece of music based on an African rhythm in June 2000: it involves a group of children in a small township in Africa, who watch a feather float through the air. Seeing this, the children get an idea and make kites to fly in the air. The segment is reportedly called "One by One" and directed by Pixote Hunt (who already helmed the Symphony No. 5 segment in Fantasia 2000) .
By March of 2001 "One by One" was reportedly finished and another one, directed by Glen Keane, was in the early stages of production. Additionally, the Disney Studio in France are currently developing a segment based on "The Little Match Girl" by Hans Christian Andersen.
Roy Disney confirmed in July 2002 that a third installment of Fantasia was indeed under develpoment, but that no release date was set yet. One segment inspired by the Andersen tale The Little Match Girl was already completed at the time, and the movie will illustrate how wonderful music is all around the world, regrouping the musics from many countries from Africa to Argentina passing by Australia.
Another rumor released in August states that the film was now being referred to as The Music Project. One of the segments will feature The Little Mermaid's Sebastian the crab "which is making music with other crabs and seasnails.
Another rumor, if you can believe it, has the film either being "fast-tracked" to meet a 2005 deadline, or paced down to be released in 2010 since Eisner wants the film to hit a "title friendly" numbered date!