No one knows what to expect from the Sundance Film Festival, least of all Chicago-based filmmaker Steve James, whose career was launched when the Utah-based event embraced his 1994 documentary “Hoop Dreams.”

Now James is returning to the festival, which kicks off Thursday, with a documentary that’s existing in a strange state known as Miramax limbo. Miramax, the alpha distributor that long dominated the indie-film scene, has been embroiled in contentious contract negotiations with parent company Disney, and all signs point to an imminent divorce, with Disney keeping the Miramax name and film library and Miramax co-founders Harry and Bob Weinstein raising money to start another company elsewhere.

“Reel Paradise,” James’ nuanced, deceptively moving documentary about former indie film rep/IFC TV show host John Pierson’s moving his family to Fiji so he could run a movie theater for a year, was underwritten by Kevin Smith’s production company View Askew, which in turn is funded by Miramax. The understanding was that Miramax eventually would distribute the film, but with the company having squeezed its release schedule down to a trickle, James is seeking a new distributor at Sundance.

The situation is amicable. Miramax even is having its publicity team at Sundance work the film, which has its first screening Saturday.

“It’s a strange situation because they’ve been extremely supportive in many ways, but they’re not going to be distributing it,” James said.

If that dynamic sounds confusing, welcome to Miramax’s world. Although the distributor hasn’t been a dominant player at Sundance for a couple of years, Miramax always manages to move to the center of discussion as the festival approaches.

Last year the talk was all about author Peter Biskind’s brutal portrayal of Harvey Weinstein in “Down and Dirty Pictures: Miramax, Sundance and the Rise of Independent Film.” This year the big question is what, if any, role Miramax will play at the festival.

Given the company’s uncertain future, many in the industry assumed Miramax might be sitting this one out, but earlier this month Dimension, Miramax’s genre-film division, snatched up the Australian horror film “Wolf Creek” before its Sundance debut. This big buy (for a reported $3.5 million, though you never can trust such numbers) sent a signal to fellow distributors and film sellers: Miramax remains in the game.

“We are tracking projects,” Miramax spokesman Matthew Hiltzik said. “We are always interested in quality independent films. We’ll have an active presence at Sundance.”

Lions Gate President Tom Ortenberg said he takes Miramax at its word. “If they’re saying there going to be a major presence, I’m assuming they’re going to be a major presence,” he said.

Fate of films unknown

No one knows (or is saying) whether any Miramax-acquired films would ultimately belong to Disney — as by definition they would at this point — or would be negotiated to travel with the Weinsteins to a spinoff company.

But even with Miramax’s unresolved status, the indie-film landscape has changed. “A few years ago we weren’t the major presence that we are now,” Ortenberg said of Lions Gate. “Focus didn’t exist, and Fox Searchlight was just starting.”

Add to the mix the 2-year-old Warner Independent Pictures, the trying-to-rebound Paramount Classics and Newmarket Films (which, despite some recent misfires, should remain flush with “The Passion of the Christ” cash), and Sundance 2005 could be particularly lively on the business side.

“The acquisitions market is robust,” said filmmakers’ representative John Sloss, who is selling 14 titles at Sundance, including “Reel Paradise.”

…

Then there’s “Reel Paradise,” which paints a complex portrait of family dynamics as well as the ambiguous relationship between a well-meaning white American and the impoverished Fiji natives treated to a year’s worth of free movies. It’s both heartwarming and a bit disturbing to see Fijian kids delighting in the antics of “Bringing Down the House” and “Jackass.”

Pierson — whose 1995 book “Spike, Mike, Slackers, and Dykes” chronicled his experiences selling such festival films as “She’s Gotta Have It,” “Roger and Me,” “Slacker” and “Go Fish” — now finds himself on the other side of the table but said he’s not too nervous.

“My No. 1 goal is not to get tarred and feathered,” he said. “I think it’s safe to say it’s a complicated portrait of me. No. 2, I want my kids to have a great experience. We’re pretty exposed here, so I hope that doesn’t turn out to be a bad choice.

“In terms of the business of the film, I hope that people get excited by the story and really want to think about it, write about it, talk about it. That’s what the film needs to push it over the top.”

But, he added, the movie doesn’t need to become another “Fahrenheit 9/11.”

“It’s water seeking its own level,” Pierson said. “There’s no big pressure to get a mega deal. It would be great for it to get theatrical distribution. If it winds up on one of the more substantial cable networks, we’ll be happy with that too.”