My biggest fear about Jackson's direction was that he was going to do an ironic take on the books, given his past track record. But he plays it straight. I have some quibbles with the film, but it is about as good of an adaptation as one can reasonable expect. McKellan and Wood are perfect. Most of the rest of the supporting cast is solid as well.
But I don't mean to damn it with faint praise. It is an excellent movie. My problem in reviewing it is that this is just the first movie. Whether it is truly a modern classic will depend on how well the other films turn out.
For instance, the jury is still out on Viggo Mortensen as Aragorn. Instead of the determined and confident Aragorn of the books, he is conflicted - afraid to take up his mantle as king. I don't like this, and if it isn't developed better in the next two films, it will hurt the films. But it doesn't ruin the first one. It just makes me aware that I am watching a work in progress, which makes my review a tad tentative.
But I definitely recommend it, particularly to you, knowing your tastes. But this generation's Star Wars and a modern classic? I'll wait and see. It certainly has the *potential* to do that. Many of the sequences are as breathtaking as the best sequences in the star wars trilogy, and the characters are better.