I'm a big Shins fan, and I think their production value increases significantly with each album.
The Shins lineup has changed quite a bit recently, with keyboardist Marty Crandall and drummer Jesse Sandoval leaving the band. They've been replaced by Ron Lewis (bass, Fruit Bats) and Joe Plummer (drummer, Modest Mouse). The Shins also made a label switch from Sub Pop to Aural Apothecary, Mercer's label.
Should be really interesting to hear the mix of James and Danger Mouse.
Personally, I can't wait for this collaboration to come into fruition with their first record. I hope it's as explosive as I'm expecting!