Cool!  Here's what I found thus far:

A movie was announced to be made by John Rogers of Dreamworks. The movie has slated to start filming in 2006 in Japan and many fan sites have tipped Courtney Webb to play the lead heroine. No other casting annoucements have been made.

Does anyone have any more info?  Hopefully it'll be nice and atmospheric...the last good horror movie I saw was "The Ring" (US version) which is of course based on the Japanese horror novel (which makes me wonder, doesn't it seem like nearly all good recent horrors are coming from either Japan or Korea?)

cheers,

-avatar!

Well, sort of.

Dreamworks is making the movie;  the first draft of the script was by two newcomers to the field, and Rogers was apparently brought in to clean up and rewrite.  He's said on his blog that the movie is going to be set in Japan and have a variant on the game's backstory (he also made a Fatal Frame II reference in the same post ... this was back in February, I believe).

Courtney Webb's interested in a role, but no casting announcements have been made, nor has any information about filming/release dates come out.

A "Variant" on the story?? 
The main story is already perfectly cinema-esque as it was in the game!!!

They should record the gameplay to use as storyboards, then just recreate the exact game scenery and angles using real people, hell they could use the in-game ghost voices and THEY'RE DONE!!!

Why do they always want to make it different by changing what is already damn good...

They'll probably get rid of all the cool ghosts like broken neck and the blind lady, get rid of the priests and the sealed gate, no rituals, etc...   *cries*

Yeah, I'm worried about the whole 'variant' issue too.  What do they need to screw around with it for?  If we're lucky, we just get a totally unnecessary explanation for why the portal to hell exists, or more Kirie/Kirie's Love, or how the camera ended up in the mansion in the first place.  If we're really lucky, maybe we get, oh, crimson butterflies and books by Seijiro Makabe or something.

I just really hope they're not softening it up.  And if Blind Demon's not in it, I'm not going - that scene was one of the most terrifying in the entire game.

Blind Demon? Which one was that in?

The first one, I think. It was the chick with bloody eyesockets. She was all floating around like O_O  myyy eeeyyyyeesss O_O.

I didn't get that far in the first Fatal Frame. I don't remember her.

I thought at first you were referring to that ghost that looks like Albert Einstein with the sword in the second one.

God, that series is scary. O_O

When i first played that game i was so scared. I couldn't sleep at night cuz i kept hearing the sounds and not until I finished the game did I stop hearing the nightmarish noises. Sometimes the ghost would make me laugh too. My friend had a laughing fit when blinded came tearing down the stairs. It was just the angle of it that made it so funny I still have numbers 1&2 but the one that creeped me out the most was the one that climed out of the well she also first climed out of a box. It was funny cuz i didn't notice her until my friend said something "Look that box moved!" she said. "Nah. your just imagining things. Hey the door won't open." "What the hell is that!!!" "whats wha......OH MY f---ing GOD!!!!" After i defeted her i said "okay i think thats enough for tonight" so i started heading for the next save point when i heard the "over here" of the little children ghost and i screamed "f--- IT" and turned off the TV then the PS2. I can't wait too see the movie if they do make it. I heard something about Tim Burton Directing it. Anyone else heard something like that?

I don't know; if it isn't the writers wanting to put their spin on it or the producers worried about getting their money back (what they think is "marketable"), it is the asinine director's egotism.