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I read about this in an issue of Popular Mechanics. I had forgotten the year, but yes, I remember it. A South African investor was the one behind it.

It was to be visually as close as possible above the waterline, with modern luxuries (such as air conditioning). The ship's funnels were to be for decor and ventilation only, with one serving as an actual exhaust port.

Beneath the waterline, it was a completely different ship. A bulbous bow with built in directional props (don't know the technical term) for steering from the front and triple azipods driving the ship (as I recall; it's been five years). The ship was to have diesel electric power if I remember correctly.

I have heard nothing new regarding the Titanic II, so I'd venture that the plans have either been scrapped or he has hit more roadblocks than he originally anticipated.

Daniel