Eh, I doubt they'll remake SH3. If they do wind up remaking SH1, they should definitely keep Harry around. I mean, there was talks of a movie to game...

I don't know if this is what you heard, but here you go.

Quote Originally Posted by Wiki
Silent Hill: 0rigins (2006)

Main Article: Silent Hill: 0rigins

At E3 2006 it was announced that a Silent Hill title for the PSP will be named "Silent Hill: 0rigins" (with 'zero' in the place of 'O'), however the trailer points out that this is still a working title (an earlier teaser was titled "Silent Hill: NEXT"). The game itself will be a prequel, presenting events that took place before the first game in the series, instead of a remake or movie adaptation as it was rumored before. Still, little is known about the game itself as it is currently in the early stages of development. What is known is that the main character will be a truck driver named Travis O'Grady and the game will be presented in third-person perspective. Konami stated that characters such as Dahlia, Alessa and Kaufman will return. Music will be composed by Akira Yamaoka. So far, this is the only Silent Hill title that is not being created by Team Silent, although they are writing the story for the game.

Screenshots can be found here: http://www.the-magicbox.com/0608/game060824a.shtml
It looks as though the remake is now Silent Hill Origins. Prequel time! Which MEANS.....ALESSA!!!