I wouldn't pick Richard Kelly to write if he insists on being as literal and explanatory as possible. He keeps throwing wormholes and the bending of space/time into everything and, instead of working it into something interesting like in his original cut of "Donnie Darko" (time travel being a great way of illustrating Donnie's struggle with maturing and transcending childhood), he just leaves it right there on the table. A wormhole is a wormhole is a wormhole.

As for writers, it's difficult to say. I know who I'd look to for direction, however:

1.) David Lynch
2.) Brad Anderson ("Session 9," "The Machinist")
3.) Lars von Trier ("Antichrist") (though I'm worried he'd go on a cynical rant at the expense of actual emotion; he's likable, but immensely heavy-handed)
4.) David Cronenberg ("The Brood," "Videodrome," "The Fly," "A History of Violence") (great with body horror, and a "Silent Hill" movie would be a challenge in exercising suspense and psychological horror alongside physical horror)
5.) Guillermo del Toro ("The Devil's Backbone," "Pan's Labyrinth") (He loves the games and has proven himself to be a thoughtful and interesting director)
6.) Werner Herzog (going out on a complete limb here, I know, but he can be as strange and weird as David Lynch. And his remake of "Nosferatu" is an acclaimed movie in its own right)

If I had any choice, though -- and experience, natch -- I'd write and direct the movie myself. I don't want to sound arrogant saying that, but it'd just be a dream come true.

ah yes, he'll be a great screen writer for the movie. i watched pan's labyrinth and its a very amazing movie, one of the best i've seen. the ending made me depressed for a couple of days..

So no one enjoys my idea about the long-term members at SHHF doing the script?

It's really difficult to say. Just because you can appreciate a good story, doesn't mean you can actually tell one. Also, I don't know any of the long-term members here, so that doesn't help.

I would choose either Frank Darabont (The Mist, Shawshank Redemption), M. Night Shyamalan (Sighs, Lady in the Water) or Jonathan Nolan & Christopher Nolan (Memento, The Prestige)....but that's me.

Yah see I, personally, most definitely wouldn't pick him...

Well, the topic is 'Who would pen the screenplay' not direct. Sometimes screenplays get re-writen during or before pre-production anyway, so there's an off chance that a better story may get molded from that.

M. Night Shyamalan does come up with some interesting stuff- it's just that he also comes up with some pretty absurd stuff (The Happening, anyone?).

I wouldn't mind at all if David Lynch ended up writing/penning a screenplay for Silent Hill's sequel (I'd especially like it if Patricia Arquette ended up the film... just for whatever), so long as there's something of a solid conclusion to the end of the film (I'm still wondering what the hell happened in Lost Highway). Danny Boyle wouldn't be a bad choice either, atmospherically speaking --- as long as it doesn't end up like 28 Days Later, in which almost none of the symbolic creatures of the character's tormented mind shows up until the very end of the movie after some "sneak peaks" at their figures.

I wonder why nobody said John Carpenter.

Me me me me me me me me me me me me me MMY me me me!

All I want to say is this.
Imagine. Silent Hill 2. Directed by Michael Bay.

Is it going to be rated PG?

EDIT: Dammit! I was talking about the wrong director!!! Regardless, Peter Jackson can go straight to hell.

david lynch would be the dream choice, but i can't see it ever happening.
david cronenberg would be a great choice to both write and direct, i think he could nail it, i wouldn't be suprised if the original silent hill was inspired in part by films like videodrome, and he's the king of shifting reality films and squiggling fleshy mutations.
i think cronenberg would be open to the idea also, he almost made basic instinct 2 because he liked the idea of doing a sequel because expectations were low and he would be able to suprise people, something like that.
yeah, cronenberg.