There is a brief mention of the Xena Movie in an interview with Lucy for Crave Online.

"Lucy also mentioned that she's probably a lot healthier now than when she was doing Xena. During that time she says she carried about 10 extra lbs of muscle on her. Since the ownership of the Xena character is limbo (there may be more than one owner, including her) there has been no progress on a film version. Lucy is very interested in doing a film version of Xena and would be unhappy if anyone else played the roll."