From Nausicaa.net:
The animated version was just fine!February 4, 2005 Disney Planning Live-Action "Kiki"
A Variety report (registration required) titled "Disney orders 'Delivery' Kiki delivering to Mouse House" describes Disney's plans for the film. An excerpt:
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"Kiki's Delivery Service," a Japanese series of books that was turned into a hit film by Oscar-winning animation helmer Hayao Miyazaki, is becoming an English-language film at Walt Disney Pictures. Screenwriter Jeff Stockwell, who penned the partially animated "The Dangerous Lives of Altar Boys," has been hired to write the new "Kiki" screenplay based on Eiko Kadano's books. The first was published in English last year...
Scottish producer Susan Montford recently teamed with partner Don Murphy to secure the rights. The duo then reunited with Murphy's "League" exec producer, Mark Gordon; all three will produce on "Kiki's." Buena Vista Motion Picture Group topper Nina Jacobson, who bought the project preemptively, will oversee it with theatrical production exec Jason Reed.
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Ain't It Cool News is also covering the story.
Thanks to Doraneko and Brian Ruh for posting the news to the MML.