Catherine Keener, making an appearance on Thursday's The Charlie Rose Show, mentioned she will be playing the mother in Spike Jonze's adaptation of Where the Wild Things Are, while Jim Henson's Creature Shop will be doing the monster puppets:
I'm getting ready to work with him again. He's doing Where the Wild Things Are. He's doing it in New Zealand. I'm playing the mom looking for Max. Then there will be six actors or so performing the roles of the monsters, the wild things. And then Henson's company is making puppets.
While Keener's involvement is interesting, I think the best news is the confirmation that Henson will do the puppets. If they can do work anywhere near as impressive as they did on The Hitchhiker's Guide to the Galaxy, we're in for a treat. There's just something about puppets that's so much more tangible than computer generated creatures. It's like you could just wait until they're asleep and slip into their little puppet beds and give them little puppet kisses all ove--Ut oh! The puppet police!