Scorsese's missing masterpiece

This new epic is set in the infamous 1850s slums of New York, and describes the violent rivalry between the Irish, Italian and Chinese immigrants. DiCaprio plays Irish gang member Amsterdam Vallon, who avenges his father's death at the hands of William "The Butcher" Cutting, played by Day-Lewis. Cameron Diaz provides the romantic interest.

It's not just Scorsese who's at risk if Gangs flops. A nervous DiCaprio badly needs a hit, too - his last picture, The Beach, bombed and the teen idol from Titanic is desperate to sharpen up his image and garner suitable plaudits to re-establish himself as Hollywood's hottest actor. Finally - and possibly most crucially - there's the career of movie mogul Harvey Weinstein to consider: this was Miramax's first foray into the blockbuster circuit, Weinstein's attempt to compete with the big established studios.

But now the feuding gangs have been supplanted by suggestions of feuding colleagues. It's said that Weinstein and Scorsese are fighting over length, taste and content: Weinstein wants the film to be more commercial; Scorsese refuses to sacrifice artistic integrity. So far, no favoured critics have been shown even a 10-minute taster (often a bad sign), and DiCaprio has allegedly moaned that he wished he'd taken a pay cheque not a cut of the profits (implying there won't be any).

Tempers reached boiling point last October, after Scorsese screened a three-hour, 40-minute edit for Miramax executives. Several production staff confirmed that Weinstein confronted Scorsese in his Park Avenue office, demanding that he cut the movie and focus the narrative, which had far too many sub-plots. "He was very rude - and Marty did not like that," said one colleague.

Weinstein has a fearsome reputation as a bully, even describing himself as "brusque and arrogant". But film producer Saul Zaentz (The English Patient) has said: "Marty is only interested in making the right picture. He will make it no matter what he has to do. And he is strong enough to fight for what he believes in. Harvey's interest is not the same as Marty's. It is about making money."

For now, Weinstein appears to have won the first round. The Hollywood trade paper Variety reported on Monday that the film had been edited to two hours 40 minutes - although Scorsese is now threatening a very costly re-shoot of the ending.

Film industry insiders are enjoying the fights. Hollywood would love to see New York upstart Weinstein take a hefty body-blow. By his own admission, Weinstein is spurned in Hollywood, despite a string of hits, including In the Bedroom, The

English Patient and Good Will Hunting. Hands were already being rubbed here in glee in January when he lost £19.5 million over the disastrous Talk magazine, one of his worst personal and professional setbacks. One month later, he was forced to shed 75 employees in a cost-cutting exercise at Miramax Films.

Before that, his track record had been impeccable. In 22 years, he and his brother Bob have turned a New York art-house movie company into a major studio with a solid record at the box office. In 1993, they sold it to Disney for £43.4 million, while retaining executive control. Today, it is valued at £1 billion. But it doesn't take much to bring down a Goliath. If Gangs bombs at the box office it could cost Miramax dearly and further damage Weinstein's reputation as a shrewd investor.

Not that he took many risks when he put the film's team together. He drafted in scriptwriters Jay Cocks (unaccredited re-writer on Titanic) and Kenneth Lonergan (Analyze This and You Can Count On Me). Diaz, Day-Lewis and Neeson would ensure extra oomph at the box office. Pat Kingsley, Hollywood's most influential spin doctor, has been hired to handle the PR.

That last appointment could indeed be crucial should Gangs of New York finally open this winter in competition with DreamWorks' Spielberg film. DreamWorks and Miramax are old rivals; Spielberg was flabbergasted when Miramax's Shakespeare in Love took the Oscar for best film over Saving Private Ryan four years ago.

Since then, the Oscar nominations have been dominated by the two companies, with DreamWorks projects winning best film for the past three years. The pressure is on Weinstein to win one back. The all-out marketing war could put the film's gangland fights into the shade.