Thanks to Neil for the following from Ausiello.
Any thoughts on the gun-toting character?
Question: Anything about Lost? — Francesca
Ausiello: Michael's reappearance in Episode 8 is guaranteed to, ahem, make waves.
Question: Can you tell us anything else about Michael's return to Lost — like who he'll be sharing scenes with? — Kelley
Ausiello: I can tell you that in one scene he appears opposite a gun-toting character we thought was dead — and who still may be. And here's the real kicker: The scene does not take place on the island. Far from it, in fact.
Source: TV Guide