The director was interviewed recently and confirmed that he is was moving forward with the project.
It's gonna happen. I'm working with the Clown writers on it. We finally cracked the story and figured out how to make it really, really scary, and a reason to do it. Before Jon starts shooting Clown he has a window.
Eli Roth has also been making his rounds promoting his new Vegas attraction The Goretorium, which opens in September.