Alright guys Igot all the info
Well the first of all The game itself is coming to America in Winter 2005
The battling is new and improved. There is a Transformation Drive (temporary name) which allows Sora to fuse with one of his teammates which helps you perform new abilities. The Health guage looks more pimped out for all of the charecters and the command list changes each time you go to a new world.
Sora can duel wield key blades. Right now the only playable demo version is in Japan.
You can revisit other worlds that you have in Kh1. There are new teammate appearance which include Auron from Final Fantasy.