It's set to be directed by Guillermo Del Toro, which in my opinion is a very excellent thing. He also made Pan's Labyrinth so he's good at doing fantasy. The downside is he's rumored not to start shooting until next year, so it could be several years before we have a Hobbit movie (or movies). The Hobbit was my favorite Tolkein, more so than the other LOTR books, so I really hope the movie is good.