From the Dragonforce website:

New Album
London based extreme power metallers DragonForce have started work on the follow up to their debut album 'Valley Of The Damned' released earlier this year.

The majority of the recording is taking place at Thin Ice Studios, Virginia Water, Surrey, England with producer Karl Groom, while all the guitars are being recorded at Herman Li's own private studio in West London.
Herman Li (guitars), Z.P. Theart (vocals), Sam Totman (guitars), & Vadim Pruzhanov (keyboards) have now been joined by new bassist Adrian Lambert, and drummer David Mackintosh (also with Bal-Sagoth).

Said guitarist Herman Li "We are working hard every day in the studio, and I can tell you that the new album will exceed the boundaries of melodic, speed power metal"

The new, as yet untitled album will be released on the Noise Records label on March 22nd 2004.