I thought that they said "by the end of the season" in the context of season *four* discussion. It's pretty vague though (I think you're referring to the Steve and Preston morning show interview).

I can find two *less* vague comment the other way, though:
1. From November 8, 2006 Ask Ausiello: "Question:... AA readers wanna know if Michael and/or Walt will appear this season.
Carlton: We have a very clear plan for this season, and I don't think we'll get back to Michael and Walt's story this season."
2. From Feb 12, 2007 Kristin on E!Online: "We put a pin in the Michael and Walt story for the season, but by no means is it over. It would be very strange for the end of Michael and Walt to just send them off in that boat without any acknowledgment of what has happened. But if you look at the bigger picture of Lost, there's a circularity to the way that story is going to unfold in the overall mythology, and that is a long, planned approach. Yes, we'll get back to the Michael and Walt story, and it will be really compelling when we do. But that's most likely a year 4 story."

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i agree i believe that bearing 325 is incorrect and they can only be saved when all the magnetic fields that the island beholds have vanished. Compass bearing 325 on a compass points northwest. Now the confusing part... When a compass points 325 bearing in a northwest direction with electromagnetic activity surrounding it DOES NOT give its correct direction as there are 2 different magnetic point. True North and Magnetic North (more information on wikipedia, The Bermuda Triangle).

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