The doom started creeping in just as Gilliam made progress. Duvall, who was set to play Don Quixote de la Mancha, was really apprehensive that the funding was going to come together. In fact, he stated that he wouldn't even start preparing for the role until the project was definite and secure. Over the summer there were rumblings that Gilliam had suffered another financial setback, and now it's been confirmed: Financing has collapsed, and his long-gestating, long-plagued passion project is in limbo once again.
Variety reports that Gilliam revealed the setback while at the Deauville American Film Festival, which is offering a complete retrospective of his work. Gilliam said: "The financing collapsed about a month and a half ago. I shouldn't be here. The plan was to be shooting Quixote right now."
Nevertheless, like always, the filmmaker is trying to remain positive. He's looking for new financing so that Duval and McGregor can finally and ultimately bring his vision to life. I imagine the success of round 34582346 will depend largely on the possibility and reality of Warner Bros' competing Quixote feature. If it's true, it could make it a whole lot harder for Gilliam to secure funding. But considering his money woes, it's not a jump to wish that WB would put theirs aside and finally let this film get made.
But for now, he tries to look on the bright side of life: "Don Quixote gives me something to look forward to, always. Maybe the most frightening thing is to actually make the film."