With Sylar back in his old body, does that mean that he is gone from Matt's Psyche? or... is that the memory that The Body of Sylar is looking for...

oooh... ok.. prediction...

Theres gonna be 2 Sylars...
Body Sylar... and Mind Sylar (inside Matts mind)

somewhere along the line they will meet? any thoughts?

Promos are considered spoilers, and as such, I've moved your post to the spoiler section

Well, Sylar is still missing his memories.

The memories and experiences that created the Sylar persona are still attatched to Matt. My guess is that the programmed memories are still the ones closest to the surface, and will be the ones to return once the amnesia is healed. They aren't going to just go somewhere, and the blank persona is not going to know the difference between his true memories (which are hanging on to matts psyche) and the programmed ones (which feel and seem real, and will be the most recent things remembered when the Carnies do their trick). Nylar will be back. (Assumption on my part.)

Is Matt coming back? He was heavily in the first two episodes and no show now.

What if when the guy with the dread locks "restores" sylar, he then suddenly turns back into Nathan. That would certainly be a twist.

According to Grunny's Twitter earlier today, Sylar vs. Matt is still on!

"Tonight's #Heroes Ep. All Time Epic Episode! The Sylar V. Parkman WAR is ON! So proud of tonight's show!"