All the information on Episode II is speculation, rumours or based on guesswork. The plot is a modified version of the one on DarkSide Rumours, but I've annotated it and changed some parts (So big thanks to Darkside). The predictions for each of the films are based on Lucas's claims that there are themes from the originals that will be repeated, but in a mirrored or contrasting form and his 'Symphony Theory' that anything in the original trilogy could hint at events in the prequels.

The Rise Of Palpatine

This was posted on AICN a bit ago, and this is an edited version of that. It explains the rise of Palpatine and how his plans unfold. This is just the info from the Lucas source without Harry Knowles' comments (Like you really wanted to read those). Thanks to AICN as for the info.

"Senator Palpatine will move into high gear beginning in the second chapter of the Star Wars Saga. The man will be the very visage of power and extravagance, while being the Supreme Chanchellor by the end of the first film, there is still much for Palpatine to aspire to. He's a power player, a wizard behind the curtains that pulls the strings, and he will of course be quite successful. It is being collected from various sources here that he will be a man of many hats. Allegedly with 'Spice mines' and as a 'Slave trader' (which we will have learned from the first film has been outlawed in all the 'civilized' areas of the galaxy). However, where Palpatine WILL become the man... we all know he can become, will be with the assistance of his personal army, a very rich trade I assure you. This army is made up of The Future Mandalorian Warriors. Here's a taste of how it all works. Say you are a senator of a planet that is caught up in the agony of war. Our dear Palpatine would come to you to negotiate for a price and (like in Needful Things) a promise to help him in the Galactic Senate should any debates be found to occur there. It really is amazing how many planets get caught up in the nastiness of war. The end result seems to always be additional power and a neverending debt from the war torn planet to Palpatine."

"Now back on Coruscant, Palpatine could very well be the largest property holder, in addition he is highly respected, and his eye is upon the Presidency of the universe or galaxy or however you want to phrase it. With the spoils of wars, he will throw his money about like rice upon a wedded couple. Palpatine will be a big part in bringing an end to quite a large conflict that occurs in Episode 2. This act will place him in the fast car aimed at the checkered flag. He will be the man of the people, and the people represent the voice of the galaxy. And it is this popularity and stardom that swoons Anakin to his side."

"Palpatine is not alone, he has been cultivating a crop of politicians, one early bloomer at this point (could be changed, but I believe it will stay) will be Tarkin, who will be a shining beacon in the Coruscant way of life, Palpatine latches on. He will reach his apex in Episode 2. He will be one of a handful of politicians, mainly unknown characters at this point, that understand and control the machinations of the Senate. The next step for Palpatine is to acquire a real Military Victory, something to beat his chest about. So, he hires his own army (the future Empire)."

As I had mentioned he was at the top of his game, and one of the few to control the Senate. Another Senator, who I must protect at this time, will be nearly as popular as Palpatine. He understands without doubts the way of thing in the Senate, and he is also a great military leader. This senator will have a perfect military record of victories, and the exclamation point will be another of the important conflicts in the prequels. The way of things in the Old Republic were very simplistic, to achieve virtue, one must demonstrate their competence on the field of blood, the battlefield. This senator was like El Cid or Caesar in that regard. His political ascension was built upon the shoulders of his victories as a field commander."

"In and around the middle of this first trilogy, Coruscant became a hive of civil unrest and shady political deals. From the fields of battle came good news, and the cityfolks hung upon every word. Our mysterious Senator was charismatic and quite an orator, his army was a thing of beauty, and he was an advocate of the HUMAN destiny, it was to be his immortal message. For HUMANS were the highest form... for him. He led his army across the galaxy against the wishes of the senate. It will be his attempt, or so it will be alleged, that it will be a move to seize absolute power. This will not be allowed. It can not, because if it is then the very fabric of the Old Republic democracy will be torn asunder. That is why the senate will act as it does. This senator was given the power to protect and uphold all the principles and values of the Old Republic democracy. This senator ventures down the dark path. And this man will have embraced the dark side to build his NEW ORDER on the ashes of the Old Republic and the mangled bones of the illustrious Jedi."(Oooo.)

This information is from very early Lucas notes, and anything could change. It still seems quite likely though, as it fits in with Palpatine's charachter.

The major change in this plot from the DarkSide on is the Darkside version refers to Obi-Wan meeting some 'Beauty' who becomes the mother of Luke and Leia. I've altered this because as everyone now knows, this is Padme (Natalie Portmans charachter). The ending is similar to different versions I've seen around the internet so that seems likely.

Title

It was mentioned in The Daily Mail ages ago, I think it was when Episode I was casting. It fits in with Lucas's symphony theory that he wants to repeat elements throughout the film (Go to The Star Wars Prequel Pic Page through Links to read about that), because Episode V is The Empire Strikes Back (Running theme,obvious, but...). Also, it fits in with the story that at some point the Empire begins to appear and gain power in time to cause havoc in Episode III.

The other possibility is a clue from Mace Windu (Samuel L Jackson) in the trailer. Another title that was considered for Episode I was 'Balance Of The Force', and since Windu's line refers to Anakin doing this, the second film would feature him fulfilling the prophecy.

Plot & Events

It had been more than ten years since Kenobi joined (And since the death of Qui-Gon) the Mandalorian war (I don't agree, I think the clone wars would only just be starting in Episode II ) and now Anakin was a handsome, young man. Kenobi had always been Anakin's hero his entire life and Kenobi anxiously awaited to train Anakin in the ways of the Force. During his teen years, Anakin worked as a pilot for a space-freighter syndicate until he was old enough to attend the Republic Naval Academy and follow in Kenobi's footsteps. Anakin and his childhold friend, Queen Padme Amidala, had fallen in love and their marriage was only a matter of time...

The stresses created by the Mandalorian war began to take their toll on the Republic. The bureaucracy became even more unresponsive to the needs of the people and the people were tired of the constant fighting and disruptions that war caused in their lives. However, matters were to get worse. Soon the Clone Wars would begin...(Aaaarrrgghh!)

Ten years had passed since Palpatine began his climb up the political ranks of the Republic Senate. With pain-staking planning, Palpatine, using the power of the dark side, had risen to become one of the most powerful figures in the Senate. And for the past ten years and under complete secrecy, Palpatine and the dark Jedi trained individuals, who wanted to be Jedi but were rejected by the Jedi Academy, in the ways of the dark side. The ranks of the dark Jedi began to swell into an awesome legion of evil that would one day challenge the Jedi on an even footing...

To make his dark Jedi and other agents even greater in number, Palpatine massed cloned them in his clandestine cloning bases, even though cloning sentient beings had been made illegal many years earlier by the Senate.

To speed his plan for galactic conquest, Palpatine had a vision that he needed to find ancient, lost relics and artifacts that would greatly enhance and magnify the powers of the dark side within him. Palpatine became obsessed with finding these lost Jedi relics...

When he became of age, Anakin enlisted in the Republic Naval Academy, but, unlike Kenobi, Anakin became bored with the regimen and resented the strict military discipline. However, Anakin managed to graduate and was commissioned in the navy under Kenobi's leadership. After Anakin's graduation from the academy, Anakin and Padme were married in grandeur worthy of kings and queens. Padme cried as Anakin told her that he would have to leave her to join the Mandalorin war. Soon, Kenobi and Anakin fought together shoulder-to-shoulder in the Mandalorian war. The war was not going well for the Mandalorian and their mysterious allies (one of which was rumored to be the ancient Sith), they realized their defeat was inevitable unless they could find a new ally to resurrect their hopes.

In order to fund his extremely expensive searches for the lost relics and artifacts, Palpatine surreptitiously approached the Mandalorian and their allies: If they would fund Palpatine's searches, then Palpatine would give the Mandalorian the cloning technology, that he had stolen from the Republic, that the Mandalorian so desperately needed to replenish their warriors. With the great riches given to Palpatine by the Mandalorian and their allies, Palpatine searched the entire galaxy for powerful, lost relics and artifacts.

After receiving the cloning technology from Palpatine's agents, the Mandalorian and their allies quickly set up cloning bases and began to mass produce soldiers. Soon they trained and sent these soldiers to face the Republic and the Jedi. Rumors spread that the Mandalorian had managed to steal the Republic's cloning technology and were using it to turn the war in favor of the Mandalorians.

Mass panic spread all throughout the various Republic star systems. The battle-weary star systems demanded the use of cloning to save themselves from the Mandalorian onslaught. This demand further split the Republic and the noble Jedi.

Palpatine was able to use this discord to get the ban on sentient-life-form cloning repealed. Palpatine was hailed as a hero for his efforts. In no time at all, virtually every star sysem began to clone soldiers to match the great numbers being replicated by the Mandalorian. In the Council of the Jedi Masters, the Council agreed that under their Code; they could never condone the cloning of Jedi. When Palpatine learned of the Jedi's decision regarding cloning, he was ecstatic his plan was working to perfection. Soon the Jedi's numbers would be at a critical low and Palpatine would be ready to make his move

Seeking a break from the rigors of the war, Kenobi took Anakin to Yavin 4, against Yoda's advise, to teach Anakin the ways of the Force. Kenobi's methods were slow, tedious and extremely difficult, Anakin was soon unhappy with his master. Anakin's wife tried to convince Anakin that his training was worth the effort, but Anakin was unconvinced. Anakin left his wife and Kenobi on Yavin 4 so that he could seek out his father's advice on Tatooine...

Spies informed the Republic and the Jedi that a large Mandalorian search force was closing in on fiding a powerful, ancient Jedi artifact to be given to the Mandalorian's new, secret ally (Palpatine). The Mandalorian search force, with Palpatine hidden aboard their command ship, were at the end of a massive search of a star system to find the mysterious lost relic. The Republic feared the worst and quickly assembled a fleet with the Jedi to thwart the recovery of this relic.

The Republic and the Jedi forces were able to punch a whole through the defenses protecting the Mandalorian search force. The Jedi seized the relic from the Mandalorian and were barely able to escape a Mandalorian counterattack. Against the wishes of the Republic, the Jedi destroyed the relic by firing it into the heart of a giant sun; thereby, permanently keeping it out of the hands of evil.

Anakin found his father on Tatooine training a few Jedi recruits. Anakin's father told him that he must follow the teachings of Kenobi and must work hard to be a Jedi. Anakin replied that the dark side didn't require hard work and it was rumored to be more powerful. Anakin's father replied that the greater power of the dark side was a dark Jedi myth and he reminded Anakin of how Kenobi's dabbling in the dark side of the Force almost cost Kenobi and his loved one's lives. Rejuvenated by his father's advice, Anakin prepared to return to Yavin 4...

The above part I disagree with the most. There have been suggestions that Qui-Gon is Anakins father but he dies in Episode I. I'm looking through the books to work this out but if anyone can help I'd be a very chuffed person indeed. From here the only aspect of the plot I totally agree with is the duel between Anakin and Kenobi. The fact that he just stumbles accros his fathre training Jedi recruits is hilarious.

Anakin returned to Yavin 4, but his wife told him that Kenobi had been summoned by the Jedi Council regarding important matters concerning the Clone Wars. Anakin and his wife visited a nearby village where he met strange alien creatures. During his boredom while Kenobi was away, Anakin made the worst mistake of his life: he began to explore the dangerous jungles of Yavin 4. As fate would have it, Anakin stumbled across an ancient temple that was full of peril. Inside the temple, Anakin unwittingly unleashed the spirit of an ancient master of the evil order. This nefarious spirit of the dark side would warp Anakin like it had warped others in the past. When Kenobi returned to Yaven 4, Anakin was missing... (And that Sith Master is almost definitely Exar Kun, from the Jedi Academy trilogy. This part is ridiculous. Lucas doesn't pay the books much mind so why use a relatively minor charachter?)

Immediately, Palpatine and his dark Jedi Master felt a great disturbance in the Force created by Anakin's unleashing of the evil spirit. Palpatine could sense the incredible Jedi potential that Anakin possessed and with the help of his dark Jedi; Palpatine called out, across the great vastness of space, to the evil spirit. The evil spirit mesmerized young Anakin and he became obsessed with exploring the powers and intrigues of the dark side. Under the guidance of the evil spirit, Anakin unleashed great hatred and anger. Anakin felt alive with the greatest power he had ever felt in his life...

The dark Jedi advised Palpatine that this mysterious young man, Anakin, was their key to victory over their adversaries. Under the influence of the evil spirit, Anakin was compelled to go to Coruscant and meet his new master, Palpatine. The noble Jedi Council also felt this great disturbance in the Force, but had no idea how great the repercussions from this disturbance would be...

At the landing bay on Coruscant, Anakin felt strangely alone on this urban world. In Palpatine's palace, Anakin was transfixed by Palpatine's charisma, power and riches...

The main focus of the Jedi and the Republic during the Clone Wars was to destroy all of the enemy cloning bases. They also destroyed any data and blueprints related to the cloning technology.

By releasing all the hatred and anger that he could muster, Anakin quickly learned the ways of the dark side under Palpatine's tutelage. The seduction of the dark side is its quick route to power without hard work or sacrifice. The dark side strips a person of their conscious; thereby, making it possible for a dark Jedi to commit the worst possible atrocities while feeling absolutely no remorse for the evil they have inflicted. With his newest and most powerful dark Jedi, Anakin Skywalker; Palpatine returned to the Senate to manipulate Anakin's dark side powers to convert more individuals to his way of thinking. Palpatine could foresee that Anakin was the key to completing his grand plan...

Soon, Kenobi learned that Anakin was with Palpatine at the Senate on the Republic home world and was puzzled at to why Anakin left Yavin 4 to be with the enigmatic Palpatine. Kenobi with Anakin's wife arrived at the Senate and confronted Anakin about his desertion. With complete arrogance, Anakin lectured Kenobi and his wife that they did not understand the power of the dark side. Kenobi rebuked Palpatine's attempt to seduce him to the dark side. Anakin refused to return with Kenobi to Yavin 4. Kenobi told Anakin's wife that this was a great betrayal that Anakin was inflicting on them. Kenobi and Anakin's wife left the Senate and headed for Yoda's Jedi Academy. After Palpatine finished his manipulations in the Senate, Anakin completed his dark Jedi training with Palpatine...

Kenobi reported his failure to Yoda and the Jedi Council. The greatest living Jedi, Anakin, had been lost to the dark side because of Kenobi's refusal to follow Yoda's earlier advice. With the vast powers of Anakin, the Jedi could foresee that Palpatine would become the most powerful and feared member of the Senate. The Jedi planned to rescue Anakin from Coruscant.

The Jedi were able to capture Palpatine's palace in the name of the Republic quite easily. Palpatine put up absolutely no resistance because he knew that he had done nothing illegal by seducing Anakin to the dark side. In fact, he welcomed the Jedi into his stronghold. Palpatine was supremely confident that the Jedi would be unable to convince Anakin to leave Coruscant. Anakin refused to leave, even after his wife pleaded with him to abadon the dark side. Anakin had become so warped by the dark side that he thought Kenobi and his wife were trying to deceive him. Anakin told his wife that he would have to stay with his new master, Palpatine, until Palpatine gave him permission to leave. Anakin's wife left with Kenobi heart broken over Anakin's decision and Anakin's wife and Kenobi would soon have an affair...(Another bit that seems doubtful. As another internet wit commented, this isn't Star Wars 90210)

Anakin was furious that his wife would not stay with him on Coruscant. Kenobi was mis-leading her in the worst possible ways. Anakin thought Kenobi was a fool for not understanding the immense powers offered by the dark side. Palpatine used this intense anger to further push Anakin to the dark side. Palpatine sensed that Anakin's transformation to the dark side was almost complete.

A few months had passed and Anakin left Coruscant to be with his wife. Feeling tremendous guilt, Anakin's wife admitted her affair with Kenobi and explained that she was lonely, vulnerable and was heart-broken by Anakin's betrayal of his family and friends by converting to the dark side of the Force. The only betrayal that the twisted Anakin saw was that the older Kenobi had taken advantage of him and his innocent, naive wife. The hate and anger swelled in Anakin to a zenith he had never felt before; Anakin would make Kenobi pay dearly for this great betrayal...

Anakin with a few of his dark Jedi friends hunted Kenobi and his Jedi friends down. And at the climax of the battle, Anakin and Kenobi met face to face in a great under ground cavern which was peppered with molten-lava pools. Kenobi pleaded with Anakin to abandon the dark side and finish his light-side Jedi training under Master Yoda. Anakin confronted Kenobi with Kenobi's affair with Anakin's wife. Kenobi explained that it was an accident, but Anakin's ears were deafened by the tremendous rage that boiled in his blood. Kenobi told Anakin that the Beauty would never live on Coruscant with the nefarious Palpatine and the evil dark Jedi. Anakin called Kenobi a liar and stated that Kenobi was about nothing but deceptions and betrayals. At this point, Anakin's heart and mind had been completely warped by the evil spirit of the dark side. He was no longer the same man that Kenobi had once known. The dark side compelled Anakin to destroy his former master. In an epic duel, the two men fought the great battle between the forces of the light and the dark side. Although the Force was tremendously strong with Anakin, he lacked Kenobi's experience and patience. In a reckless tactic gone awry, Anakin fell into a sea of molten lava.

Believing that Anakin was dead, Palpatine's dark Jedi attacked Kenobi and the Jedi at his side. Kenobi seized Anakin's light saber from the floor of the cavern and left with the other Jedi. From out of the shadows of the great cavern, Palpatine appeared and ordered his waiting medic droids to remove the charred Anakin from the molten pool of lava. Palpatine had foreseen that Anakin would be defeated by the more experienced Kenobi. Palpatine knew, at long last, that Anakin's transformation to the dark side was now permanently burned into the very soul of Anakin. On Alderaan, Kenobi and Anakin's wife were greatly saddened by Anakin's apparent death. Kenobi felt he was solely responsible for Anakin's fall from grace. Kenobi promised to care for Anakin's wife and her unborn child for as long as they lived. On Coruscant and in a bacta tank, Anakin was kept alive by his intense hatred and by Palpatine and the dark Jedi's great mastery over the dark side of the Force. A permanent bond now existed between Anakin and Palpatine. Palpatine's dark Jedi and Palpatine could foresee that with Anakin the end of the Jedi and the fall of the Republic was now inevitable. (And the film will probably end with a small glimpse of Vader's black armour)