has been delayed several times costing Warner Bros and New Line Cinema a fortune, but now Peter Jackson has managed to begin the mammoth task.
After several highly controversial delays including a union battle over pay, a change in the New Zealand legislation, and a racism row at the casting process, the film can now begin.
With Peter Jackson out of hospital, improved tax breaks for the film's production, and filming taking place at home, the excitement can only build.
Producing the films will take approximately 2 years with the first set to be released at the end of 2012.
The Hobbit Films, a prequel to 'The Lord Of The Rings' will star Ian McKellan, Elijah Wood, Cate Blanchett and Andy Serkis.
Will the shoot go smoothly, or can we envisage further risks, production delays and potential environmental disasters?
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The International Competition is set to showcase 66 films representing 52 nationalities.