If you look at the Lost Isles, you'll see that there are different versions, one that is the normal starting area for lowbie Goblins, and the 2nd is the phased version which is the volcano that has erupted.
I'm assuming the phased version will be where the raid instance is located(if that is what it is) since it would be a bit insane to have a raid instance in a lowbie starting area. :P