DreamWorks has nabbed rights to Slamdance Festival entry Paranormal Activity--but don't get too excited. Variety is reporting that the film, directed by newcomer Oren Peli, will likely go to DVD without a theatrical release. Says the magazine, "Peli shot the film over one week with a high-def camera in his own house and with two unknown actors, Katie Featherstone and Micah Sloat, who manned the camera much of the time." Even though it's going straight-to-DVD, Peli's got to be happy with the cash. According to Variety, the haunted house film had a "micro budget." If you can't wait for the DVD, check out the trailer, which has a Blair Witch--like feel to it.