The game is done by Snowblind Studios, which are the same folks that did the Baldur's Gate: Dark Alliance I and II games, as well as Champions of Norrath and Champions: Return to Arms.
Long story short: if you liked those, you will like this. It is basically just a next gen version of those but with LotR trappings and a closer-zoomed camera.
The game is made for 3 players so even if you go it alone there will be 2 AI NPCs.
You can do 2 people on one console, split-screen, and have the 3rd join over Live, or you can just all be on Live or System Link.
Once we finish the game I'll let you know more but so far this is definitely scratching that itch I had for a fun action-RPG with killer loot.
There are 3 characters, a dwarf warrior, human ranger and elf mage. You have some minor customization options in terms of appearance and 3 skill trees to put points in.