I personally loved the first film, mainly because of the cinematography and would love to see ANY new silent hill film, though as I'm sure a lot of people would agree, I would most like to see Silent Hill 2 made into a film as it feels like it would be perfect, though the actor to play James would have to be spot on.
Also in regards to the monsters from SH2 already being used in the first film, it shouldn't matter. Since Pyramid Head was made for James originally they could put James version (the frail looking one
) in the film which would make it feel different, also with the lying figures they never had any of the weird scuttling around on the floor in the first film, so they could do that in the second which would make it feel different again.
My supply fell through...