Traffic information processing is very complicated because of dynamic, cooperative and distributed features. This paper describes the prototype system version 2.0 of Urban Traffic Information Service Application Grid (UTISAG),which is based on the previous version. In this version, a new architecture and more enhanced services are introduced.The remarkable characteristic of the new system is providing dynamic information services for travelers by grid technology. Therefore, the key research includes integrating large multi-source traffic data, forecasting route status, simulating regional traffic flow parallelly, and implementing optimum dynamic travel scheme based on massive GPS data.