I heard a rumor a few months ago (don't remember where) that there was a 3E remake of the Giants/Drow series in production (possibly a Return to Against the Giants or something similar). Anyone know if this is true or false?
Doubtful. I think there might have been a remake of Against the Giants in late 2nd ed already, and WotC have other fires in the iron for drow fans (an FR mega-adventure with novel tie-ins).
What I don't understand is: why set up this whole City of Shade thing (new and interesting) and then go back to drow (old and tired) for the mega-adventure?
Beating on drow (or playing drow beating on other things) is one of the things people want to do when they first join the game, so WotC attempts to deliver on that promise...plus the novel tie-ins allow for some crossover, increasing chances that people who buy the novels will be interested in the game, and vice versa. It's somewhat mercenary, but commercially very sensible - and a lot of people love dark elves...
I hope they make a "Return to the Haunted Halls of Eveningstar" style adventuring grounds soon - fleshed out town, and fully detailed countryside, lairs, dungeons and NPCs all the way down to encounter level. That's a "Keep on the Borderlands"-style launchpad for new DMs to do their own thing, and superior to yet another mega-dungeon. I can see the brand management promises being met in that, and it would take enough campaign preparation out of the equation for players who wanted a non-linear environment to play in to be worth an equal page count to another megadungeon.
I agree with you about the Haunted Halls thing, rounser...that was one of my favorite modules. In fact, I am in the process of using it for my characters (althought they've left it behind, pretty much)...I updated the ESD download to 3E.
And made Lady Tessaril Winter a member of an evil serpent cult.