AVP III is VERY likely going to be set in space...where? Hell if I know. Maybe the Alien homeworld. Maybe the Predator homeworld. Maybe another colony planet. As long as it takes place in space, I'll be happy.
Look, I would like to see an Alien 5, set on the Alien homeworld w/ Ripley involved, but the way things are going, I HIGHLY doubt that's gonna happen.
In my opinion, I think AVP III should either be set on the Alien homeworld OR another WY colony planet...something like Ryushi.
A good AVP film can be made, you just need the right people. AVP R got many things right, while also getting things wrong, but I cant believe anyone would say the first AVP film was better (well, maybe the photography was brighter).