I was just reading an article on theonering.net, and discovered how Mr. Wood will make his appearance in the Hobbit! He will be in the opening sequences and I quote here from TORn:
"The fictional book and, either the telling from it or the reading from it, will establish Frodo in the films experiencing Bilbo's story. Viewers are to learn the tale of 'The Hobbit' as a familiar Frodo gets the tale as well.
Since the speculation is now everywhere around the interwens, TORn can confirm that as of now, the plans are to feature Frodo in the opening sequence of the films."