Yeah this rumour has been passed around a bit. Personally I think it would be a good movie if done correctly. The Halo storyline is actually quite a bit of fun. Hopefully Halo 3 will answer more questions that Halo 2 opened up.
The plotline for the Halo series is surprisingly good- and whoever the scriptwriters are... they know how to generate buzz in the gaming community with the vague background posts (I Love Bees being an excellent example).
I hope they do a movie- because I hate the game and would like to get excited about a Halo product with the rest of gamers out there.
The end of Halo 2 was really annoying. The fact that you play through the entire game and then it ends right before you know what happens. Daniel has some interesting ideas on what Bungie's plans are but I will satisfied with other better games in the meantime.
I keep hearing that they want Ridley Scott to direct the movie and I think that he could do a cool job I just wonder how realistic a seven foot guy in a tranformer outfit will look in live action movie.
Right around the time that Halo2 came out there was a bunch of stuff on TechTV showing people dressed up as the master chief. Some of those costumes looked totally realistic. I think one of the guys worked for a film studio and his was fantastic. I think it could be pulled off... but the movie is gonna require so much cgi... and that's usually not a good thing.