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update: Peter Jackson might direct the Hobbit Movie

Hah! I said not to trust the agent! Peter talked to the New Zealand Dominion Post aka stuff.co.nz, and said:

Jackson met studio representatives yesterday to begin the search for a new director but wouldn't rule out directing The Hobbit himself if a suitable person could not be found. "If that's what I have to do to protect Warner Bros' investment, then obviously that's one angle which I'll explore," he said. But stepping in as director would be difficult as he had signed writer and director contracts with Hollywood studios for two other films, with one likely to begin next year. "The other studios may not let me out of the contracts."

Lots of caveats there but it's better than nothing.

ETA: correction, it's stuff.co.nz, my favorite New Zealand site