Square-Enix have been revealing a lot of new information lately and there have been a lot of Scans, trailers and demos too. We have decided to put together all of the latest KH2 information together here. We will do our best to search for the latest KH2 info, scans ect. and put it all here. So let's start with the new information:

-Demix's instrument is said to be a Sitar (a 3 string instrument), but some people still think it's a Samisen or some kind of Guitar or Cello. (Uncomfirmed)
-Demix's element is Water.
-Demix is number 9.
-Demix appears in the Olympus Coliseum world.
-KH2's theme tune is called "Passion" and it's being performed by Utada Hikaru who also did KH's theme tune.
-Xaldin's element is Wind.
-Xaldin is number 3.
-Xaldin appears is the Fabled Countryside world trying to kidnap Princess Belle.
-Atlantica is rumoured to return.
-The Blue form is called the "Wisdom Form", it powers up Sora's magic and gives you the ability to glide along the ground only in that form. Also, it seems that pressing the O button triggers a ball of light as it fires from the keyblade like a missile (believed to be called "Shot" or "Shoot"). And further more, there's a new skill/ability you use which is only available to use in a boss battle. And Lastly, it seems that using the same same magic spell in a row upgrades it in the Wisdom form. For instance if you use Thunder 5 times it will upgrade into Thundara. -Javy
-Each Organization member controls their own Nobody.
-Minnie's ring holds a secret.
-Riku appears in Mulan's world and he is not a member of the Organization, he just believes in what they are doing.
-A new woman Organization member has been revealed, you see her at Hollow Bastion.
-There's a new Organization member called Luxord who appears in PotC world (Port Royal). His weapon is a pack of cards and there's rumours going round that he's the Superior.
-DiZ isn't the leader of the Organization and his intentions are to destroy it. DiZ's voice sounds like that of Ansem's, could he be Ansem's "shell"?
-Seifer, Fujin and Raijin from Final Fantasy VIII appear in Twilight Town.
-The ship called the "Interceptor" is actually called the "Buffalo Berry" or the "Buffalo Bell" and it seems to be where the worlds Keyhole is located.
-The competition in Twilight Town is called the "STRUGGLE" (in English), they read this on a poster on the Clock Tower. The final match is a two-on-two and they battle under a banner that says "FIGHT" (in English) on it.
-In the Disney Castle you need to escort Minnie Mouse to the throne room protecting her from Heartless on the way. At one point she joins your Party and has a magic attack called "Holy".
-In the Land of Dragons you fight this gigantic multicoloured dragon with Mulan in your party. You need to get on the dragon's back and focus on smashing those horns, just like the Behemoth in KH. The only problem is that the dragon is floating which makes it harder to jump onto its back. And when you're on the dragon's back it'll try to shake you off. Another thing that was noticed is that Mulan sometimes stumbles while in battle, which makes it all more realistic.
-Cloud has a side story that in no way is related to the main story of KH2.
-Sephiroth will not be making an appearance in KH2.
-The Steam Boat Willie story is very important and you battle Heartless just like any other world.
-The Lion King world appears for the first time in KH2, along with the original characters such as Simba, Nala, Timon, Pumbaa and Scar. Just like Atlantica in KH, each of your Party members takes on the form as an animal. Donald = Zazu type bird. Goofy = Turtle. Sora = Cub.
-The Steam Boat Willie Mickey and Pete are different from their other forms/roles outside of the Steam Boat Willie World. This suggests that there are two different Pete's and Mickey's.
-The Organization is something completely different from what we thought.
-Blonde Haired Kid (BHK) is tired of his normal, boring existance like Sora (And Riku) was.
-In the Fabled Countryside (Beauty and the Beast world), when you battle the "rose" boss, the reaction attack for that boss involves Sora swinging from the chandelier while hitting foes and circling around the room.
-The "old" Organization member is called Luxord and he wields a pack of cards as his weapon. The cards are said to have some connection to all the Organization members. Could he really be the Superior?
-BHK is playable!
-Atlantica is back! This level is similar to what it was in KH and the battle between Ursula is some kind of musical game and Prince Eric makes his first appearance in the games! We can only asume his dog and "butler" will be in it too and you can go above land as well as in the sea.
-Sora has two new attacks, Magnet and Attract. Magnet draws foes closer to get a better shot at them and Attract repels them with a bubble force field.
-KH2 will be released in Japan on December 22nd 2005!
-Aladdin's world focuses more on the Cave of Wonders than the dangerous streets of Agrabah.
-Co-Opperative Moves: Aladdin: Trickster, Beast: Final Roar, Auron: Shooting Star, Jack Sparrow: Death Bringer, Minnie: Holy, Simba: Limited, Jack Skellington: Recital.
-Reaction Commands: Sora: Address Shift, BHK: Blast Raid
-Squall/Leon has a new uniform, it's the same as he wore in Final Fantasy VIII, and in recent scans he appears to be in a new world that's not Traverse Town, could this be an FFVIII world?
-Squall/Leon appears in several worlds.
-New Worlds: Lion King and Tron.
-In the Pride Lands (Lion King) Sora tranforms into a Lion cub, Goofy into a Turtle and Donald into a Zazu-like bird. Sora weilds the Keyblade in his mouth, not his tail.
-In the Tron world Sora and Co wear robotic costumes like in the old Disney movie, Tron.
-Rikku (FFX-2), Yuna (FFX-2) and Vivi (FF9) appear in KH2 and some new Unknowns have been revealed.
-Stitch appears as a Summon in KH2.
-New Co-Op moves: Goofy: Knock Rush, Donald: Donaflare
-Hollow Bastion is the new Traverse Town, the world you visit multiple times and start out at.
-In the 100 Acre Wood world you play Mini games (like the first KH) but there's more variety.
-There is a Yellow Drive Form which is a mixture between Valor Form and Wisdom Form and it's called "Master Form". This form will empty the Drive Gauge quicker than normal and it is best used in sticky situations where a lot of power is required. The Keychain represents KHCoM.
-One of the new Organization members name is Xigbal.
-The recently revealed Organization member is actually called Xighar and not Xigbald.
-Xighar: "No, you weren't a good child."
-Stitch's third final move is called "Finish" (activated by pressing the Triangle button.
-At one point in the Hundred Acre wood there seems to be a mini game where Pooh rides on Sora's shoulders while collecting honey and dodging obstacles like snowballs.
-Kanga and Gopher appear in the Hundred Acre Wood.
-The big battle scene which we thought took place at Hollow Bastion supposedly takes place somewhere else. (We can only call this a rumour.)
-The duration of flight in the Master Drive form is long.
-The Drive gauge changes into a Summon gauge during Summons.
-Pooh has forgotten Sora and his other Hundred Acre wood friends.
-You use the Circle, Square and Triangle buttons during Summons and use up your Drive Gauge.
-Stitch is a Summon and his commands are: Circle Button: Shot, Square Button: Ukulele
-Vivi was included into the game because of the number of requests.
-There is a town in Hollow Bastion, could it be an FF town seeing as most of the FF characters reside in HB?
-Moogles/Mogs will also make an appearance in the game again.
-Xigbal is no.2 in the Organization.
-A screenshot with a hooded Organization member was seen, could this be a female Org. member?
-Tron is the last "surprising" world, but not the last world in the game.
-There is a motorcycle race in the Tron world.
-The computers in the Tron world make old style sounds (Tron is an old movie, so it makes sense).
-Atlantica has been made into a sort of musical world...
-There are at least two other slightly hidden Drive Forms in the game (There have been rumours of a Pink Drive form and Green Drive form).
- BHK has some sort of skateboarding minigame to earn munny, probably running errands for people etc. (Delivering post/mail and putting up posters to earn munny)
- Neverland will not be returning.
- Demyx is supposedly terrible at fighting.
- Luxord is a gambling type-person.
- BHK and Sora are never at the same place at the same time.
- While using BHK the only commands he has are "Attack" and "?" (huh?), he has no Drive Gauge.
- Struggle Battle involves collecting balls your opponent drops. (One-on-one battles)
- Each world takes roughly 8 hours to complete. (This game is going to be long!)
- Selphie starts to forget Sora.
- BHK has a dream about Sora which he thinks about carefully.
- The blue haired Organization member is called "Saix" and he weilds a large sword which looks like the Keyblade.
-You start off the game playing as BHK, this can take up to 3 hours to complete.
-You have more control/options for customizing/configuring your party members fighting personality etc.
-There will be a boss fight where you can fly (I suppose this makes up for Neverland not returning).
-Peter Pan is a summon and Genie returns as a summon, but he does more than use lots of magic.

Now onto the names and descriptions of some of the Co-Op moves:

Donaflare > Rocketflare > Mega Donaflare
Missiles appear and lock on to enemies surrounding Sora.
Mega Donaflare is the same but it's a lot more powerful and creates a big explosion.

Knock Rush > Twin Raid > Cosmo Boost
The move "Knock Rush" is where Goofy hurls his shields at Sora and Sora deflects them at foes using his Keyblade.
"Twin Raid" is where Sora and Goofy hurl their weapons at opposing foes.
"Cosmo Boost" is where Goofy charges at enemies and bashes them dealing some damage.

Cluster Code > Burst Pulse > Reprogram
"Cluster Code" involes summoning the spirit of data injure enemies.
"Burst Pulse" is the same as "Cluster Code", but with Tron.
"Reprogram" summons a mass of spirit of data to inflict damage on opponents.

Co-Op - Fantasia (Donald)
Co-Op - Dragon Blaze (Mulan)
Co-Op - Trick Faster (Aladdin)

Quotes