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[REEL NEWS]

Items from the Terminator, which stars Arnold Schwarzenegger, brought top dollars in a Profiles in History auction earlier this week. PHOTO: AP

Peter Jackson, the creator of the record-breaking Lord of the Rings trilogy, is to executive produce two Hobbit movies after settling a US$100 million lawsuit with film studio New Line, the studio said Tuesday.

The prequels will be based on the book of the same name by J.R.R. Tolkien and will revolve around Bilbo Baggins before he embarks on the Lord of the Rings quest. The films will be shot simultaneously in 2009 and will be released in 2010 and 2011.

"I'm very pleased that we've been able to put our differences behind us, so that we may begin a new chapter with our old friends at New Line," Jackson said in a statement.

It's unclear whether Jackson will direct either of the two movies, with the New Line statement saying he and Fran Walsh, his wife and co-producer on the Rings trilogy, will act as executive producer and "manage the production" of Hobbit.

The couple sued New Line in 2005, claiming the studio cooked the books and seriously shortchanged them for a franchise that earned US$3 billion at the worldwide box office and captured 17 Academy Awards, including an 11-category sweep for 2003's Return of the King, the last in the series and the Best Picture Oscar winner.

A cyborg skeleton from Terminator 2: Judgment Day that was auctioned in California with other movie memorabilia.

The People's Choice Awards had the red carpet yanked out from under it Wednesday as fallout from the Hollywood writers' strike grew.

The ceremony, which typically airs live, will be taped for a Jan. 8 telecast, a spokeswoman for the show said. Queen Latifah, who previously was announced as host, will be part of the new format.

"We realize there are pressing issues facing the entertainment industry, including the WGA [Writers Guild of America] strike, and out of respect for everyone involved this provided an opportunity to pilot a new format this year," awards spokeswoman Jeannie Tharrington said.

The show will include pre-recorded acceptance speeches by winners as well as their responses to questions sent in by fans, according to a People's Choice statement.

The "new approach will give fans a more personal glimpse into the lives of their favorite actors and musicians," awards President Fred Nelson said in a statement.

The People's Choice ceremony gives the public the chance to choose its favorite music, television and film entertainment.

With the Screen Actors Guild preparing for its own negotiations with producers next year and stars showing firm support for striking writers, the question has been whether presenters - or even nominees - would show up for an awards show boycotted by writers.

The guild's action is an attempt to bring the Alliance of Motion Picture and Television Producers back to the table and reach a favorable deal on issues that include compensation for digital media, labor experts said.

Prominent awards show director Louis J. Horwitz is returning to direct the Academy Awards, his 12th time running the show for Hollywood's biggest party.

A four-time Emmy winner for his past Oscar telecasts, Horvitz will direct the 80th Oscar telecast, show producer Gil Cates said Wednesday.

Oscar nominations come out Jan. 22, with awards handed out Feb. 24.

This year's Oscars, along with other entertainment honors such as the Golden Globes, approach amid uncertainty because of the writers' strike. If the strike lingers through the awards season, the shows could be left unscripted, and stars might fail to show to avoid crossing picket lines.

Horvitz has directed dozens of other awards shows and specials, including within the last year the VH1 Hip-Hop Honors, the Academy of Country Music Awards and An Evening of Stars: A Tribute to Aretha Franklin.

A cyborg skeleton from Terminator 2: Judgment Day brought in nearly US$500,000 in a Profiles in History auction of Hollywood memorabilia dominated by props and costumes from Arnold Schwarzenegger's sci-fi franchise.

An armored drone went for over US$100,000, and a full-body Terminator model went for about US$75,000. Both items were from Terminator 3: Rise of the Machines. A full-scale tyrannosaurus rex head from Jurassic Park was the second priciest item of the day, bringing in over US$126,000.

Gentle, kindly Mary Poppins could hardly compete. Julie Andrews' signature gabardine coat from the 1964 film brought in a comparatively modest US$63,250.
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