I adore that film to bits, and it has great potential for a Merlin AU. You go ahead and I will sit on the sidelines telling you how much I can't wait to read it. ;)

My idea will only take one of the scenes from the film, really -- there's this segment where a lord starts a relationship with a lowly maid, and then leaves her pregnant and penniless whilst he gets engaged to a noblewoman. What he neer knew was the poor girl was also a sorceress, and she crashes the wedding feast and curses the entire wedding party into wolves, so that they can serenade her baby at night, forever cursed. Except my idea is that Arthur will be one of the wedding guests, and Merlin has to try and break the curse because he can't bring to murder a heavily pregnant woman who was misused. Except maybe there is a time limit, and he must free Arthur from the curse before the baby is born! And then there are Merlin and wolf!Arthur adventures. Maybe I can work in the other werewolf tales into it as I go on. XD