There are actually two Nico films in the works. The one you mentioned, the one by David Mackenzie, was announced late last May. I've been kind of following it and haven't seen/heard anything since. No stars attached. It has a pretty well known director (he made 'Young Adam,' which was pretty nasty) screenwriters (David and Janet Peebles, who wrote 'Twelve Monkeys') and a production company (vagabond Films) but it hasn't started filming yet. The other one is by some dude named Mark Jay and is called "Nico - The End." Nico's being played by a model named Frida Show. The only other cast member information I came across was the guy playing Andy, whose name I can't remember but he was in one of the x-men movies. There's infomration about this version at
http://www.fullonfilmproductions.com
I'm scared that the Factory era's going mainstream. Sienna Miller's playing Edie Sedgwick in a movie called "factory Girl," Madonna's playing Candy Darling in an "upcoming Warhol/Factory film" or so they say and Cale himself's collaborating with a couple of people in a documentary about Warhol and the last half of his sixties (but I think that actually sounds pretty cool.)
Speaking of documentaries, I wanna Velvets doc!!! Fucking METALLICA has a documentary and they SUCK! There's Southbank, Channel 3, blablabla, but I didn't think they were that great. They were really short and had tons of filler, like long extended clips of New York traffic, and this shit always, ALWAYS focuses on just the Warhol part and then gives a couple of sentences about WLWH on. Maybe I'll just go make one myself. Anyone wanna lend me about a couple of million dollars and a good camera? I'lll be careful, I swear.
And call me weird, but I want to know what became of Steve Sesnick.