He practised for 3 and a half hours with Joao Sousa today. Reports from site said he was hitting the ball well -- a good mood in the camp. Toni gave an interview saying Nadal has some "fear" about returning to court but that is natural. That is why he asked for his first doubles match to be before his singles so he can get a feel of the court/his game etc. It'll take some time for him to get the right rhythm but Toni is happy as they've been training well and he's not had any problems.
Given how much Nadal relies on confidence and needs matches to get that I think this South America swing to come back on tour looks more and more like a better idea. Hard courts in Australia straight away probably would have been tougher.