The film will be done by the same folks (Square's Digimation) that are bringing us Final Fantasy. It will be one gigantic, photorealistic fantasy film. And SUPERMEGA is currently in negotiations with Columbia to take the project.

While on the topic, Final Fantasy VIII has gone gold for the PC.
update Jack - Regarding the EQ movie, there's one fact that Steve forgot. It'll have the longest fight scene ever in a movie - A cleric, wizard, and warrior will be hacking at a skeleton, a bear, and another bear for two straight hours. Wow, talk about true to the game!
update Clay - Jack forgot one thing - it will also feature a 28 hour camp so ogre warrior Barshem Halfingsmasher can get 2 short swords of the ykesha. Oh yeah, other cool movie news: The Spiderman movie is going to directed by Sam Raimi, there will be a CGI Transformers movie(!) and, drum roll please, an X-Men movie starring: Patrick Stewart as Professor X, Iam Mckellan (Apt Pupil) as Magneto, Ray Parks (Darth Maul!) as Toad, Famke Janssen (the evil chick in GoldenEye) as Jean Grey, Rebecca Romijn-Stamos (Austin Powers 2) as Mystique, and Halle Berry as Storm. Sounds mass-neato.