You will no doubt recall that production on the film hit a major snag recently when Lionsgate exercised their contractual rights to pull original director Kevin Greutert from the film in order that he could fulfil his duties on Saw 7. Greutert was quite vocal in his displeasure at this course of events, but Paramount seem to have given up any hope of resolving the situation.
Whilst De Palma may not be the obvious choice, his recent Iraq war film Redacted used similar techniques to the original Paranormal Activity to tell it's story and he does of course have a long relationship with the horror genre through such films as Carrie and The Fury.
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