This should help people understand where the Naruto anime is.
After Naruto's and Sasuke's fight, Jiraiya, Naruto, and Sakura make their way to rice country on a mission to find Orochimaru's lair and "rescue" Sasuke. While there they encounter Sasame, a young member of the Fuuma Clan. The Fuuma Clan were a group of ninja's that had split apart. Part of the group joined up with Orochimaru believing his promises for strength and the other part became bandits. Sasame was trying to rescue her cousin who was part of the group that joined Orochimaru. So the group makes their way to Orochimaru's place and try to sneak in, like he wasn't already expecting them. Some battles happen involving the Fuuma ninja's and finally they meet up with Orochimaru. Note that only Naruto, Sasame and Sakura are there with Orochimaru. Jiraiya is tied up in another fight. And lo and behold, a plot twist I saw from a mile away. It turns out that Sasame's cousin was the one Orochimaru had chosen as his new body. Le shock! So now we get to see what this new body holds for Naruto and the others.
There were other minor plot twists and such, but they werent that important. Anyways, thats where its up to via episode 140.