MAKING MAGIC

There’s life after all for independent-minded directors who battle studios: It’s now official that Columbia Pictures will distribute Terry Gilliam’s $25-million “The Adventures of Baron Munchausen” (three months ago, a trade paper prematurely announced a firm deal). This marks Gilliam’s first film since “Brazil,” the controversial $15-million film that resulted in Gilliam taking on Universal and studio head Sid Sheinberg for control of the film’s ending.

Columbia president David Picker shrugged off Gilliam’s past: “We anticipate no problems. We’re delighted to have made the deal.” Firmed last week, it gives Columbia worldwide distribution rights (with the exception of Italy).

Based on a popular character in European folklore, “Munchausen” will deal with the fall of the era of magic--and the dawn of the era of realism. “It will be an endorsement of the romanticism of magic,” said a Gilliam associate, who described a storyline about a cynical old man (the baron) and an idealistic little girl who embark on fantastic journeys (to the moon, and even inside a whale), eventually restoring the baron’s faith in magic.

Currently in pre-production in Rome, “Baron Munchausen” will shoot in Spain and Italy this fall, with Christmas, 1988,the likely release date.