Wordy Wednesday: Their/There/They're

I'm realistic enough not to assume that people know this (even though they should, but I digress); so I'm just going to throw it out there and hope it sticks.

their = belonging to them

there = a place

they're = they are

Which of the following sentences is correct?
1. There going to they're cabin located in the woods over their.
2. They're going to their cabin located in the woods over there.

If your guess was #2, you're right. (I spy a future Wordy Wednesday topic in that sentence...Do you?)

But I bet you see sentences like #1 more often than not. I do, and they make my brain hurt.

I'd like to end with a shout out to my friend Johnny Hotsauce, who gave me the idea for Wordy Wednesday. You'll always be a state spelling chimp to me, my friend.