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Originally Torchwood was an anagram for Doctor Who . When the latest series of Dr Who was aired there was a rise in popularity and people wanted to know the scripts before they were released. In order to keep scripts from being leaked onto the internet, Russel T Davies created the anagram of Torchwood to appear on the production notes so that they would be overlooked by people trying to get them. Later he then decided that it would be a good name for a corporation and therefore it was added to the second series, finally making its appearance in "Army Of Ghosts".
Torchwood was created in the late 19th century by Queen Victoria herself.
In the Doctor Who episode "Tooth and Claw" The Doctor visits the 19th century and saves Queen Victoria from a vicious alien. To face the newly discovered threat of an alien invasion, the Queen starts an institute for alien research in the house where the attack took place - Torchwood Manor.
Torchwood base number 3 is located in Cardiff, Wales, since there is a rift in time and space going through the city. Aliens and generally nasty creatures are constantly being drawn to and sometimes coming out of the rift, making its protection an important task for the Torchwood team.
There is (or have been) three other Torchwood bases. Number one was located at Canary Wharf in central London, but was destroyed in "The battle of Canary Wharf", as seen in the end of Doctor Who season 2. Number two is located in Glasgow. Captain Jack Harkness has stated that number four is missing, but will turn up.
Shortly after the ninth Doctor Who was regenerated into the tenth, he lost his hand in a battle (wearing his jimjams). He could let the hand grow back, but the old one was taken care of by Jack, who uses the hand to determine the presence of The Doctor. When The Doctor is around, the hand starts to glow, as demonstrated in in the season one finale "End of Days".
Diane was featured in the season 1 episode "Out of time". She flew her plane with two passengers trough a rift in time, from 1953 to 2006. Being taken care of by the Torchwood team, she and Owen started a relationship. In the end she chose to try and fly home again, leaving an emotionally wrecked Owen behind. Diane returned as a ghost in the season one finale "End of Days" when she tried to make Owen open up the rift, saying it would reunite them.
Executive producer Julie Gardner has indeed confirmed that this it the case. Filming on the 5-part mini-series will begin in August. It has been confirmed that John Barrowman, Eve Myles, Gareth David-Lloyd, Kai Owen and Tom Price will all be returning, but it is not known if the characters of Owen and Toshiko will be replaced, however, the ending of series 4 of Doctor Who seemed to hint that Martha (Freema Agyeman) and Mickey (Noel Clarke) would join the team. James Marsters has announced that he will be back filming in Cardiff.The episodes will be written by Russell T. Davies (1, 5), James Moran (3) and John Fay (2, 4). They will all be directed by Euros Lyn. The new producer will be Peter Bennett. The five-part story will be entitled "Children Of Earth".
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