As Intel confirms Ivy's are backward compatible, so would it be clever enough to go with a cheap core i3 Sandy Bridge Processor now and a year later upgrading it to Quad Core Ivy Bridge Processors? Some say the initial release of Ivy platform would be Socket '1155' how true is that?
Don't know about "initial release" but AFAIK Ivy Bridge processors will be on Socket 1155 and Sandy Bridge E processors will be on socket 2011.
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Ivy bridge will also debut on socket 2011 but after 1155 next year. Its 22nm die shrink.
Ivy Bridge, as stated by Intel, will be compatible with "some" LGA 1155 motherboards.
Now we don't know which, for all probability, INTEL might announce it works only with Z68 based motherboards, which would be a disaster, for us, again.
Regarding release time frame, this time next year, it should be available in a market near you (estd. Q2 2012)
^^ Wrong buddy. Ivybridge processors will be completely compatible with "cougar point" chipsets comprising of H61,H67,P67 & Z68.
Even the "panther point" chipsets will be backward compatible with current sandybridge processors for socket 1155.
Check this.