I heard that Interplay and Black Isle's liecence to produce D&D games would not be renewed does anyone know if this is true or not. if so where does this leave Neverwinter Nights?

You heard right.
This still leaves NWN totally under Bioware's hood, meaning that NWN itself, any subsequent mods and expansions are still Interplay's property and they can use the licence in them indefinitely. (More or less).
But that's about it for Interplay. Unless they will be granted the licence again (very unlikely) they will not be allowed to produce any more D&D games. At all.

But still, NWN and it's legacy should keep us running for a while. ;)

Thanks for clearing that up for me Tal, is the Balder Gate franchise likewise protected.

I believe so. There are unconfirmed rumours about an expansion/follow up.
After that they will probably concentrate on their Star Wars franchise.

Yes, same applies for Baldur's Gate and any previous games like Icewind Dale.
But with HoW's release now, the last thing before NWN ships will be the BG2 expansion.

If Interplay is loosing the D&D liecence is there any word on who mayby picking it up? I know WotC will want to have more D&D games made.

No idea. But Mattel (or whoever is publishing for Stormfront Studios now) has bought the licence to use 3rd ed rules in the new Pool of Radiance. I don't know if they have it for sequels too, though. If there'll be any.
Or if the whole thing wasn't just a large stretch out from their first PoR game (ages ago). The terms of the contract then might have allowed them to make a sequel without paying a lot (if any) money for it.

Of course, these are all my speculations only. Developers of PoR keep much more to themselves than Bioware/BIS so finding out any inside details is much harder.

Wouldn't it be stupid for WoTC to not renew the D&D liscense for Black Isle and Bioware? I mean every CRPG they have made has been a best seller, has had highly decorated, and garnered legions of fans eagerly waiting for Black Isle and Bioware to feed them(us) again.

Seems to me like not giving them the liscense would be stupid. Stormfront has not really proven themselves in the market yet, Black Isle and Bioware have, repeatedly.