Reviewing both chapters to date at once...
Good concept. Very much like it. Good characterization with the kids as well. I especially like the spitting match between James, Snape, and Bella.
The only thing that bugs me is the Sorting Hat. It sounds entirely too...rational, too concerned with how the kids feel, not nearly teasing enough. In the books, it never explained its actions in a way that made Harry feel comfortable with where he was at...actually, it's always seemed a tad sadistic to me, especially in CoS...therefore having it give lots of warning about what it's going to do, and why, feels...off. I don't know how to be more specific, I'm afraid.
Anyway, hope this is useful.