The Gen 1 997 engine is in fact very similar to the 996 engine and does still have an intermediate shaft, albeit the bearing size was increased on the later models (I believe from 2006 onwards but I am sure someone will be able to confirm) which reduced the chance of problems. 997 engines have been known to have cylinder bore issues but it is important to keep things in perspective. Although you hear a lot about the ones that fail you do not hear much about all those that do not have any problems.
The Gen 2 engine has a revised layout and no intermediate shaft.