I just don't see what's scary about Pan's Labyrinth. I mean, actually scary. It's a creepy fantasy, like many of the best fairy tales. But more than that? I think you're havering, Lalaith.
Mirkwood, giant spiders, dragon: these should all be good. But I hope he makes it a whole lot more positive than PL. Bilbo's cheeriness should not be kept in the background.