MAJOR SPOILER ALERT!!!
-VERY DETAILLED!!!!-
This is how the story continues, I left out some of the sidestories and the bloodlines.
The Hokage of the Sand, Gaara, is hunted by the Akatsuki who finally want to capture the "tailed" demons. Eventually, he's beaten and his demon is extracted while Naruto, Sakura, Kakashi and the old lady from Sand village are still fighting to get to him. Gaara dies, but after defeating the first Akatskukis Gaara is resurrected by Naruto and the old lady who gives her life in return for Gaara. One of the dying Akatskukis discloses that Kabuto is a spy for the Akatskui in Orochimaru's base and a meeting is scheduled in a few days.
After returning to Leaf villiage Kakashi who was injured is hospitalized, while Team Kakashi is temporarily assigned a new leader, one of the Anbu - I can't remember his name; I think it's Yamato or sg. The new leader, who is a clone of the first Hokage created by Orochimaru has the ability to seal and control Naruto's Kyuubi. Moreover, a new dubious team member with an unknown past and unknown loyalties joins the crew, Sai. He uses paintings to create dangerous foes.
The four leave for the meeting where they discover that Kabuto has betrayed the Akatsuki and is in league with Orochimaru who is also nearby. After some fighting -Sai switches sides to Orochimaru-, Naruto unleashes his demon powers and in order to defeat Orochimaru he unleashes the fourth stage of the Kyuubi transformation. In that stage he loses control of himself and his consciousness. He beats up Orochimaru pretty badly - he mentions his body has reached his limits and soon he has to switch- and is hurt pretty badly in return. He also injures his love, Sakura. After Naruto has been returned to normal by Yamato who also renews the Kyuubi seal -Naruto can't relie on unleashing Kyuubi anymore-, they'll pursue them and eventually the find one of Orochimaru's hideout. After some infiltrating Naruto finally meets up with Sasuke who is not only ultra powerful but also doesn't care for Naruto and the rest. All that is on his mind is revenge on his brother and he doesn't care if he has to sacrifice his soul in exchange. As Sasuke tries to kill Naruto, his move is deflected. Sasuke is really powerful, he can also reach inside Naruto's mind where he has a chat with Kyuubi himself who seems to know the Uchiha bloodline very well from the past. Kyuubi warns Sasuke not to kill Naruto.
In this story Arc Sai switches sides again after his secret mission has been foiled by Naruto & Co. Naruto's loyalty finally makes him a real part of the team.
Team Kakashi returns to Leaf village empty-handed. After load of dialogues Kakashi promises special training session to Naruto to make him as powerful as Sasuke so that Naruto may bring Sasuke back yet....
OK, that's the story so far. Don't blame me for the clichees, etc., blame the mangaka.