I think that the best story from the Silmarillion for a movie is 'Narn i hin Hurin'. It seems to have the best storyline for a movie. The other stories each have these faults:
-Appearance of the Valar
The Valar are the equivelants of gods. They're mysterious, powerful beings. Unless done wonderfully well, I think that they wouldn't be good on film. This rules all much of the beginning of the Silmarillion, the War of Wrath, and Beren/Luthien. If Beren/Luthien does not have the part about Mandos, its whole theme is destroyed. Still, Beren/Luthien tale is the next best after Narn i hin Hurin, IMO.
-No Beginning or Ending
The tales that concern Elves have no clear beginning. Almost all the stories have no ending, as the main bad guy, Morgoth, never dies. However, in Turin's story, the main antagonist can be Glaurung instead of Morgoth. And he dies, along with Turin, so I don't think anybody can dispute about where that story ends.
Turin's story, however, has great potential to be made into a film. Not only does it have a good storyline, it is also the most detailed, having appeared in full in UT.
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