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Yes, they did.

I've been there, it's set up just like Diagon Alley in the beginning when you first arrive to the Wizarding World of Harry Potter. Upon entering the park, there is all of the shops you would see typically in Diagon Alley, and, you can acually browse and enter some/most of the shoppes. Then, there is the Hogwarts castle that was built, the exterior of the castle is built similar to that of the movie-version castle. But, the inside however, is much different. There is acually a themed ride that goes throughout the castle. It's a brilliant design. I hope this information may ammount to something!

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Q: Did Universal Studios actually build Hogwarts and the town?
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