Here's another article on it, more info on the Creature Shop involvement :-
Branagh to star in E Nesbitt film
Kenneth Branagh and Eddie Izzard are to star in a £14 million film of E Nesbit's classic children's novel Five Children and It.
Freddie Highmore will also appear in the movie that will blend live action with computer graphics and update the book's original 1902 setting.
Branagh plays the uncle of five youngsters who are sent to stay in his strange house by the sea.
Izzard will voice It, the grumpy 8,000-year-old sand fairy who grants the children one wish a day, but which never quite work out the way they had hoped.
Jim Henson's Creature Shop, which created the animal characters in Hollywood hits Babe and 101 Dalmatians, has built a radio controlled model for It, said a spokesman for the movie's producers, London based Capitol Films.
The Isle of Man Film Commission will co-finance the project, which starts shooting in July.
Source :-
http://www.ananova.com/entertainment/story/sm_781342.html