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Although I have no immediate plans to ever step up to the director's plate, there are novels that I would love to take a whack at making into a movie.  Titles currently tickling my cinematic fancies are...

The Traveling Vampire Show by Richard Laymon

Blossom by Andrew Vachss

The Drive-In by Joe R Lansdale

One Rainy Night by Richard Laymon

Rumble Tumble by Joe R Lansdale

Bite by Richard Laymon (blocking out the opening fight to the death between Sam, Elliot, and Cat would be such a rush)

Dead in the West by Joe R Lansdale

The Dunwich Horror by H.P. Lovecraft (or The Shadow Over Innsmouth)

The Mist by Stephen King

The Stake by Richard Laymon

Didn't someone make a King Mist feature?  For cable?  This is a few years ago --
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There's a terrific book called simply "Midnight" by the same guy who wrote the book that "Night of the Living Dead" was based on.  This is a very short novel -- more of a long shortstory, really -- but even though it's been 17 years or more since I read it I can still play scenes of it in my mind.  'Can't recall the writer's name now --
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Not B horror, strictly, but I'd love if someone in the age of digicam would shoot a film of Bukowski's odder short stories.

The Mist has been languishing in development hell for eons.  Frank Darabont (The Shawshank Redemption, The Green Mile) currently holds the rights, but no film is planned.  A radio adaptation was made an is okay by radio play standards, two slimes.

John Russo is the man you were thinking of.  He did adapt Midnight into a movie (which featured Lawrence Tierney as the sexually abusive stepfather and John Amplas as one of the satanic brood).  The books if quite good, the movie incredibly bad.  Four slimes for the book, a skull for the movie.

Russo also wrote the novels Return of the Lving Dead (the movie was 'based' on it), The Majorettes (also made into a bad movie), The Awakening (which was made into a movie called Heartstopper, I have no idea if it ever saw release but it starred Tom Savini), and Voodoo Dawn (which was also made into a movie).  He wrote a Night of the Living Dead novelization (based upon his and Romero's script) as well as his own clone of the movie which he called Inhuman (brain damaged terrorist terrorize a psychatrist on retreat with his patients), it is so blantantly a knock off Night that I cringed.

He has vanished from the literary front recently.

I think there was a movie of the Dunwich Horror, directed by Bert I. Gordon (!) and starring Orson Welles (!!) and Michael Ontkean (Sherriff Truman of Twin Peaks). Haven't seen it, but it's one of the many b-flicks for sale at my local place.

As for books I'd make into movies, I'd like to do some of Daniel Pinkwater's books, particularly Lizard Music, Alan Mendelson: Boy From Mars, and The Snarkout Boys and the Avocado of Death. If you haven't read them, I recomend them; They're meant for kids, but they're almost Dadaist in their weirdness. Of particular note is the last one on my list, which revolves around the title characters sneaking out to a b-movie theater.

Somebody did make a audio version of "The Mist" with William Sadler in the main role.  It's most notable point, since this was broadcast without commerical interruptions, is halfway through where the characters all of a sudden break out into "Hey, Bob, pass me some of that Skippy Super-Chunky" talk.

I'd like to see THEY CAME AND ATE US: ARMAGEDDON II, THE B-MOVIE by Robert Rankin put into film, just because it's so insane.

THE DESCENT by Jeff Long is a great update of the old journey to the center of the earth story.  It may have to be made a miniseries, since it's thick with plot.

This was a topic that I was thinking of earlier, but I forgot all my prime candidates.  I'll post later.

I'd like to see a shot at "Stinger" by McCammon...

While you are at it, a series of films based on the "Dragonlance" saga would be pretty much the ultimate sword and sorcery movies for me.  Though "The Crystal Shard" might be an easier project and turn out just as well.

Andrew

VB - There was a movie of The Dunwich Horror, but it was a Corman special with Sandra Dee and the ever hammy Dean Stockwell. It's bad, very bad.

Whoops, right you are, Steve-- I was thinking of "The Witching."

Twit though I am, I recall enjoying the Corman "Dunwich Horror" very much on the big screen in rural Virginia back in the '60's.  There is a great amount of time devoted to Ritual per se, which appealed to me very much.  Oh, yes, I hated how the camera chose to focus on Ms. Dee flexing her oblate muscles so much when she was supposed to be having sex with the Spawn of Chthulhu, but what the heck -- There was colour and madness and a lot of shouting.  Not anywhere near as dreadful as some other films I've seen madly championed here:  Equinox, anyone?

PJ - with it being RURAL Virginia, you hadn't been sampling the local er...plant-life had you? It's certainly enjoyable on an absolutelyawfulmovie level, but Dean Stockwell is appallingly, dreadfully OTT.  VB - Orson Welles in a BIG movie? This, I have to see.

No, sadly, no plant life enjoyment, just enjoying the whole weird guy weird family worshipping their houshold alien gods thing -- not a whole heck of a lot of movies quite like it, way back when.  Really thought it was unique -- Imagine seeing it in a vacuum --
I really need to watch it again -- I can vividly recall the whole "cup on top of the ancient book & pray to the demons while the shocked neighbors object" scene.

Dante's Inferno would be cool. I think they made a version in the early 20's, but it could be really cool if done now with the was technology has advanced.

I agree with Andrew: the Dragonlance Chronicles or the Icewind Dale Trilogy would make for a good Sword and Sorcery movie.  I'd add the Dark Elf Trilogy to that as well (sort of a prequel to Icewind Dale), particularly for the strange world it takes place in.  As long as we're on the subject of S&S, the Wheel of Time might be interesting, but it's soooo long (you could probably compress the last three books into one movie, though).  The Elric Saga would be good too.  Outside of SF, Point of Impact by Stephen Hunter would make a good movie as well (I thought there was some plans on making it into a film, but it's likely in development hell).

Gw - the good old BBC did a tv adaptation of Dante's Inferno a few years back.  It had poor old Johnny Geilgud reciting the words over some pretty appallingly realised backdrops - supposedly  showing each level of hell. It was so bad it's never been seen again.

If I had to pick a book to turn in to a b-movie it would have to be Edward D. Woods 'Killer in Drag'.  I was really surprise at how good the book really was. Ed Wood my not have been the best filmmaker in the world, but the could write.  Then of course if that film does well I'd love to the sequel 'Death of a Transvestite'.  I think two books would translate great to film, as long as people could handle the subject matter.  If you don't know it's a bout a man who loves dressing like a woman, and is a hit man.  He kills in drag and is trying to save for a sex change operation.  If I couldn't do these two, I'd love to make Hunter S. Thompson's Hell's Angels in to a movie.   Then if all else fails I'd make Penthouse: Letters into a film.