Has any information been released on where this game will fit in the storyline? I did a little cursory searching yesterday and couldn't find anything.
Almost certainly between GoW 1 & 2 because:
a) It was a concept that Ready of Dawn came up with and pitched to Sony and Santa Monica Studios. So they were probably going off of the events of the first game at that point.
b) The ending of GoW 2 really doesn't leave any room for a side game- it pretty much mandates God of War 3 pickup right from there.
c) There was at least one reference in GoW 2 that seemed to hint toward the PSP game