Yes, it is safe to say that if these rumors are true, Naomi Watts is definitely Narcissa Malfoy. There was a big story about it a few months ago.
Joseph Fiennes, like many speculate, could, in fact, play a young Tom Riddle Sr. That would be actually very cool to have them both in the same film...and play relatives! You never know. He could even be cast as Voldemort when he goes back to ask Dumbledore for a job. *shrug* It's a thought.
As for Stuart Townsend, he made a very horrifying vampire. He's definitely got a great "evil" look. I would not be surprised if Townsend was cast as Greyback, the psycho werewolf.
Shannon