Shrek 2: Jeff Katzeberg recently spoke with Animated Movies about what we can expect from the animated sequel:

"'Shrek 2' is about coming to terms with the fact that everything that happened in the first Shrek was a gigantic mistake. Shrek was not meant to rescue Fiona. Her true love was meant to be Prince Charming. There was a whole plan of what was going to happen to Fiona, her future and her kingdom, and Shrek has made a fine mess of all of it. It begins with an invitation from Fiona's mom and dad, who, you recall, locked her away in a castle to await Prince Charming's kiss".
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Thanks to Dark Horizons for the scoop!