Avatar Land (Disney's Animal Kingdom)
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Supposedly Cameron is not the easiest dude to work with and that, when frustrated by Imagineering and what he considers to be their lack of progress, he simply walks away and, say, stashes himself at the bottom of the ocean. That must make for a fractured and unwieldy work process for the Imagineers on the project – a kind of stop-and-go rhythm that's harder to wrangle than one of those flying dragons.

...reports The Playlist:
http://blogs.indiewire.com/theplaylist/producer-jon-landau-clarifies-reports-on-avatar-4-progress-on-avatar-land-sluggishly-continues-20120903#

Interactive plant for Avatar Land? Read more here:
http://www.engadget.com/2012/08/08/disney-research-botanicus-interacticus-hands-on/

Screamscape writes:

2015/2016 - PANDORA - The World of Avatar - Confirmed - (8/9/12) Engadget reports that Disney is working with Berlin-based Studio NAND to create a new kind of interactivity between humans and real life plants called Botanicus Interacticus. Through the use of a capacitive sensor, a low level current is piped through the plant so that the system knows exactly where you are touching it resulting in a variety of reactions. Examples of the technology was put on display at the SIGGRAPH show, where the results are displayed as an effect on a mirror image behind the plant.
While no actual practical use was mentioned for the project, this seems like something we would see added to Pandora: The World of Avatar for sure

Source:
http://screamscape.com/html/wdw_-_animal_kingdom.htm#Avatar

Screamscape reports that construction/on-site work on Avatar Land has begun:
http://screamscape.com/html/wdw_-_animal_kingdom.htm

Not for Avatar, says this article:
http://www.stitchkingdom.com/disney-secret-flying-dragon-avatarland-21272/

But is this a reliable source?

I work at AK. It looks like Camp Minnie Mickey will be getting the axe in a couple years for Avatar to move in. Ironic since this was the area originally slated to be Beastly Kingdom, another land with a mythical theme.

That dragon is patented. Here is some artwork for the patent filed by Walt Disney Imagineering in March 2010:



Source: http://www.insidethemagic.net/2011/09/disney-announces-james-camerons-avatar-themed-land-and-rides-for-animal-kingdom-theme-park-at-walt-disney-world/

Disney and more has a great article about this dragon with more pictures:
http://disneyandmore.blogspot.com/

Disney is presumably testing Dragons for Avatar Land:

Flying a mechanical dragon hundreds of feet in the air above Shafter's Minter Field is no way to keep the thing a secret.

That was apparently Disney's intention, however, when it swore airport officials to secrecy by having them sign a nondisclosure agreement as part of its rental of a hangar, a golf cart and rights to test the modified ultralight before shipping it off to Florida later this summer. But what about everyone else who has business at the airport and happened to look up at the sky at various times over the past year? (...)

"It looks real," flight trainer Justin Dyck said. "I thought it was going to be in a movie or something and they throw a little dragon in there." Restaurant manager Tammy Zaninovich snapped photos and posted them on Facebook. So much for the surprise. "It breathes fire and the mouth opens and closes," she said. "It's pretty cool." The independent Disney fan website Neverland Gazette says the dragon is part of a show Disney World is putting together based on the movie "Avatar."

Source:
http://www.bakersfieldcalifornian.com/local/x1076260226/Dragon-spotted-over-Minter-Field

In an article about expansion and budgets for Disney Avatar to open in 2016 maybe later:

Iger added, is a "land" planned for Disney's Animal Kingdom based on the movie Avatar, which isn't expected to open until at least 2016.

http://www.orlandosentinel.com/the-daily-disney/os-disney-parks-capital-spending-20120614,0,7260737.story