Adam Shankman, best known for hits like Hairspray and The Pacifier, has been hired to direct, but it isn't known how heavily the iconic music from the ballet will play into the plot, if at all. The Nutcracker in 3D infamously added lyrics to the music, and those new songs were universally criticized.
Darren Lemke, who most recently wrote Jack the Giant Killer, is adapting the screenplay. New Line is setting up the holiday fantasy as a tent pole holiday film for 2013. I guess they are hoping that audiences have forgotten about The Nutcracker in 3D by then.