Technically the motion picture is in the development stage
and has been there because an agreement on a script continues to come into conflict between Glen's creative vision and the studios preferences in order to produce a greenlit shooting script. Several completed scripts have been submitted (in various different approaches) so I wouldn't exactly call it "production #@$@". I would say "development hell" is more fitting but unlike the usual perception of the term - there is movement. Movement has never been the problem, it's setbacks by respective parties that delay the next stage towards true pre-production. You can thank NBCU in part for the continued delay thanks to their new series attempt which while enjoyable to some in the industry is considered a failure that harms the value of the property and the perception of potential investors (who usually aren't fans, just brass concerned about returns) needed to put together a multi-million dollar production budget.
I really can't comment on the use of what songs to use in the movie and while it's a nice idea, keep in mind there are licensing issues to deal with for copyrighted music and clearances that need to be reached in order to use it in a feature film. It really comes down to how badly someone wants the track in the film. It's not unlike Glen using several original recordings from The Eagles and Willie Nelson which had to be cleared for the series and later other songs were created as "soundalikes" by the masterful Don Peake in order to get around paying heavier royalties.
Lastly, allow me to make one thing perfectly clear - this is Glen's movie and Glen's baby. I don't take any ownership over it whatsoever. I take pride in being able to help contribute whatever ideas I can but Knight Rider has and always will rightfully belong to Glen A. Larson.