Film site Empire has the lead, claiming that the movie already has a script and should reach cinemas by 2008!
"Street Fighter is returning to make another assault on our senses, but instead of planning a follow-up to the frankly pants 1994 Jean-Claude Van Damme action adventure, Hyde Park Entertainment and Capcom are re-imagining the film to focus on the most popular female warrior, Chun Li.
Apart from that, the companies are staying quiet on exactly what Justin Marks’ script will contain. But it is known that they’re planning to have it in cinemas by 2008, just in time for the game’s 20th anniversary. Fight! Fight! Fight!"
After the original, I don't think anyone's expectations will be too high for this.. in fact, they'll be incredibly low. Frankly, fighting games making a good movie? It's a near impossible task. Don't forget the recent trash that got labelled with the "DOA" brand. That movie probably looks worse than the original Street Fighter, Hollywood hasn't learnt much since the 1994 release.
Personally, I think Jackie Chan will be up for reprising his role as Chun Li from the classic City Hunter. Check out how good this movie could be.