Its probably not the best idea to post spoilers or hints to spoilers here.. :P

To answer your question see:

www.ear-tweak.com/ramblings/qa_inu.htm

www.inu-yasha.org/qa.html

"Q. Will the second TV series of InuYasha air?

A. Tsujitani (a voice actor playing Miroku) answered this question at his website on the 9th of November. According to his answer, it is possibly that the second series is produced while it takes time.

Q. 143 It is very sad that InuYasha TV series has ended. I was wondering if its second series would be scheduled to air?
A. It seems to me that the production side (Translation's note: Yomiuri TV, SUNRISE, Shogakukan) bears the second series in mind though it has NOT been confirmed at all. I guess, for example, it does when the story in the manga series goes up to that the perspective of the end of the manga series becomes clear. It may take two or three years. I think that it depends on a situation at that time. Obviously, there is also a possibility that the second series isn't made. I can't say for sure at present. Please wait patiently."

The manga has not ended in Japan - most likely it will go to 500+, and they are making ass-loads of money off the series, so I have little doubt there will be a continuation of the series sometime in the near future.

In the meantime you can always wait for the offical releases to come out, and watch them in a higher quality then the HK imports or fan subs you've most likely watched to get to episode 167 in the US :P I've also found the manga to tell a better story then the animated series, so theres things to do while we wait :)