From the horse's mouth: no more Conchords
We wondered before if Flight of the Conchords would make a third season, and now we know. It won't. The final episode of the HBO series' second season had them returning to New Zealand to be shepherds and that's where they're staying.Jermaine Clements and Bret McKenzie (co-stars and co-writers of the series as well as the only two members of the group) wrote on their website that while the characters Jermaine and Bret are done, the real ones will still be around.
At first I thought this was a tactic for getting more money from the producers, but after some thought there is likely some truth to their statements about the series being hard to produce. The first season was much easier because they already had the library of songs to use. The second season was probably so much harder that it put them off a third season.
There is always the possibility of a movie. Keep buying those DVD sets.

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