Magicbox- Sega will release a PS2 version of NiGHTS into Dreams in Japan on February 21, 2008, for 3990 yen, a remake of the first NiGHTS game on Sega Saturn. The PS2 remake will have enhanced graphics and support 16:9 display.
http://www.the-magicbox.com/gaming.htm (the Nov 19th post).
They've been logging this as a rumor for a while now, this was supposedly the confirmation.
Here's a pic of a Japanese magazine article of the game, which serves as more convincing confirmation:
http://www.ukresistance.co.uk/pics5/nights-ps2.jpg
I, for one, never got a chance to play this game before, having never owned a Saturn. And I have a friend of mine who's been dying to play it for years, but she's never gotten around to hunting down a Saturn.
No word on a US release, but several people are saying it would be pretty stupid of them not to.