Look Around You. Erm, Lou.
According to Robert Popper on the Yahoo! lookaroundyou group, the Series 2 DVD is due out mid-January. Excellent. No word on extras as yet, but I'm really hoping for some behind-the-scenes stuff, as that was one thing that was sorely missing on the Series 1 DVD.
As for a Series 3:
"Sad news is we are not making a third series of LAY but hope to make a new series of something else silly some time. I am busy producing the third series of Peep Show and have my new book - Return of The Timewaster Letters (by Robin Cooper) out on Oct 6th. Pete is busy doing lots of acting and parts in films but we hope to return with a bang...."
Probably a wise decision - although I hope what they next do together is in a similar kind of vein. Just think what other kinds of TV shows they could parody/pastiche...