Again, the DPRK not intending nor having any realistic capability to actually directly hit, or close collision or endanger a Shuttle, but being able to create a huge media stink with their timing, and a mindset in the drama department, (which is why they launched on 4 July a few minutes away from the Shuttle launch)--this is possible. Kim Jong il is a movie director, a creator of secenarios. Nobody can predict what is in his brain, but I think this could be one of his scenarios the week after next.
What I suspect they are doing is now readying another Taepodong-2 launch for the day the Shuttle returns mid-month, yes.
I think that is certainly possible. Scaring people is what he does best. However, if he really does it to Space Shuttle, this will be probably his last stunt.