It seems to be on track. Residents of the adjacent neighborhood got a letter in December about all the wonderful things that were happening with SeaWorld/Discovery Cove, including the water park. The water park is planned for a 2007 opening, and it was described as having beautiful beaches, amazing slides, etc. Nothing specific. The letter also talked about the "beautification of the corner of International Drive and Central Florida Parkway as our gift to your neighborhood." That's laying it on a bit thick.
I just hope they don't give it a cheesy name. After the names of their last two new shows at SeaWorld, I don't trust them not to name it something painful.
I haven't seen any land clearing going on yet, but I haven't been peering through the trees, either. I'll try to remember to take a look the next time I drive by.