Oren Peli, director of the first Paranormal Activity and the upcoming 'found footage' project Area 51, has signed on to direct Eliza Graves, reports comingsoon.net. The story is loosely based on a short story by the great Edgar Allan Poe and the project was once rumoured to have all sorts of stars attached, including Johnny Depp, Heath Ledger and Natalie Portman. No official casting news has been released for this incarnation of the project however. Eliza Graves is the story of a Harvard Medical Student who begins work at an insane asylum, only to realise that the patients seems to be in more control than the doctors who work there. No release date has been announced but expect this sometime in the last quarter of 2011.