There is a draft in the works... championed by the anti-war Left, one Rep. Charles Rangel (D-NY) in particular. They are pressing legislation for the express purpose of undermining support for the war - they figure that fear of a draft can be utilized in opposing war policy.
It is only a proposal that will have to be voted on in congress and it will never pass even if it gets out of committee. The idea is to get the younger vote out for Kerry and they are of course being lied to. A proposal is not the same as being actually 'in the works'.