Earlier last week word came around that James Cameron is tapping the great guys at WETA to handle the effects for his upcoming return to science fiction cinema, Avatar, and maybe for his following film Battle Angel as well.

With that news came the speculation from some that this was bad news for the Halo movie, since WETA is supposed to be in the midst of doing effects work for them. Apparently some folks think a big-time effects house like WETA can only work on one movie at a time. Anyone have the numbers on how many movies ILM worked on last year? I'm betting more than a dozen.

To assume that WETA can only work on one movie at a time is the height of lunacy, and I'm not sure where this crazy theory came from. This weekend, the Halo creators at game maker Bugie confirmed its stupidity in their weekly update on their official site.

According to their latest update, WETA is hard at work on the Halo movie even as we speak. They even link to the profiles of some WETA designers, who are already listing Halo in their bio. For proof, check out Greg Broadmore, Brad Goff, Daniel Falconer, and Stephen Crowe.

In even better news, the update goes on to promise they'll have some more substantive Halo movie news to share with us next week, after a rather prolonged drought. Check back with us then and we'll have the latest.