"Narn I Hin Hurin" (The Children of Hurin) would make a TERRIFIC movie except for the obvious point that the ending is thoroughly unhappy. I don't think that would be accepted well at all by moviegoers.
The Lay of Leithian (Beren and Luthien), on the other hand, is absolutely perfect, IMHO. It has drama, romance, fight scenes, awesome villains (my favorites are Celegorm and Curufin), a kick-tail dog (Huan), and a somewhat happy ending (though it would require some explanation).
The Hobbit is almost certain to be made IF the copyright problems can be cleared up. The company that currently owns them won't let New Line have them without a lot of money being paid.
But I'm personally confident that The Hobbit will be made in the near future (next 3-5 years). LOTR was such a blockbuster hit that New Line and PJ know they'll do well with the prequel too.
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"If you're referring to the incident with the dragon, I was barely involved. All I did was give your uncle a little nudge out of the door."
THE HOBBIT - IT'S COMING
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