In an effort to bring you absolutely every single piece of available "Iron Man" news, there’s this: ILM was just hired to do all the fancy effects work.
Industrial Light & Magic will provide most of the FX, Skywalker Sound will provide the aural magic, and a virtual all-star team of artists and technicians are just about to get rolling on Jon Favreau‘s Marvel Comics adaptation.
The team will include John Nelson (Oscar winner for "Gladiator"), Hal Hickel (Oscar winner for "Pirates of the Caribbean: Dead Man’s Chest"), Ben Snow ("Attack of the Clones"), and four-time Oscar winning sound designer Chris Boyes ("Lord of the Rings: Return of the King"). Plus they’ve already got "practical FX" maestro Stan Winston working on that nifty suit.
Source: The Hollywood Reporter