Yes I did it in Oct 2008 with Kokoda Track Experience. I can recommend them. Lots cheaper than some others and the owner has some strong ties with villagers along the track as he started out putting in water and sanitation for them before starting the trekking business.
Yes, you will want to be fit. What we call hills and slopes here are nothing to what you will encounter over there. I found it very mentally challenging as you need to think about almost every footstep given the mud, roots, rocks, side slopes along the track.
My tip is to get a porter. I carried most of my gear myself and would not do so again. You will develop a great bond with your porter and appreciate his assistance along the way.
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