I was thinking something like Morocco, but who knows. It looks cool, though, and one assumes they'll keep the RE4 control scheme (or a variation thereof).
According to an IGN preview today, heat will be a factor and "when it's particularly hot, you'll want to cool down in a cave."
I'm really looking forward to this one too. I'm currently replaying RE4. I had forgotten how great this game is. I'm having just as much fun the second time through.
I read that the desert town theme was inspired by the movie 'Black Hawk Down'. They want to convey the greatly outnumbered and constantly fighting for your life feel of the movie. Sounds great to me. Sign me up!