Production has got underway on Funny Games, Michael Haneke's first English-languagepicture and a remake of his 1997 Austrian thriller of the same name.

As previously reported, Naomi Watts, Tim Roth, Michael Pitt andBrady Corbet star in the Hamptons-set tale of a wealthy family that isterrorised by two psychotic young men.

Halcyon Pictures' Chris Coen is producing after he secured therights two years ago. Hamish McAlpine of Tartan Films is also producing.

Celluloid Dreams holds international rights and the producers arein talks with domestic distributors.

"I'm both excited and terrified to be working with Michael, agenius, whose work I have long admired," Watts said. "He takes yououtside of your comfort zone, which is exactly the challenge and stimulus anactor wants."

Haneke previously directed The Piano Teacher, Cache, CodeUnknown, Benny's Video andThe Time of The Wolf amongothers.

Watts and Celluloid Dreams' Hengameh Panahi are serving asexecutive producers.