But residents who missed seeing new movies in their neighborhood have just gotten a pleasant surprise. Almaden Cinema 5, located at 2306 Almaden Road in the Willow Glen Plaza on Almaden Road, has graduated from a budget theater to a movie house that screens major new films.

Paul Gunsky, president of CineLux Theatres, used his powers of negotiation with several studios that were reluctant to deal with an independent neighborhood theater, and on Dec. 18 the Almaden Cinema 5's marquee displayed the titles The Lord of the Rings: The Two Towers, Harry Potter and the Chamber of Secrets and Two Weeks Notice.

"People thought it was a misprint when they looked at the movie listings in the newspaper," Gunsky said. He adds that feedback from patrons has been positive but hasn't come without some surprise. "They'd call and ask, 'Are you guys really showing 'Harry Potter'?"

Gunsky, the youngest of four children, operated Campbell Plaza Theatres Inc. with his father, Jack Gunsky, until Jack's death in 1996. Paul had become the company's president in 1994 and continued operating the company under its original name until December 2001, when it became CineLux Theatres.

Almaden Cinema 5 isn't the only one of the CineLux Theatres locations to make the change from budget theater to mainstream movie house—Plaza 4 Theatre in Campbell, the Chabot Cinema in Castro Valley and the New Delta Cinema in Brentwood are upgrading as well. Only the Cinema Saver 10 in Milpitas will remain a budget theater.

With the ability to feature first-run movies, CineLux Theatres also has flexibility in the length of time it can run the films, Gunsky said, even if it means passing up the opportunity to screen another prominent movie. If the movie is popular the theater will continue to show it. My Big Fat Greek Wedding was screened for a record 26 weeks.

Gunsky said that Almaden Cinema 5—formerly known as the Almaden 5—screened new movies until it changed to a budget theater in the early 1980s.

CineLux Theatres will occasionally screen movies that have played at the multiplexes, such as the Century Theatres, but it still aggressively campaigns to screen first-run movies.

"We're really looking forward to The Jungle Book 2 coming out," Gunsky said. Convincing Disney Studios—among others—that Willow Glen could handle an opening-day screening to the 1967 sequel wasn't too difficult because "neighborhood theaters are a dying breed," Gunsky said, "and some studios are sympathetic to them. They see Willow Glen as an appealing alternative to the multiplexes."

And Gunsky is doing his part to keep the neighborhood theater alive. In 1998 he refurbished the theaters with new cushioned seats and armrests with cup holders. He also plans to install Dolby stereo sound equipment. The upgrades have helped to keep studio representatives' attention piqued, he said.

However, Gunsky also knows that Willow Glen moviegoers look beyond the enticement of opening-day titles. The patrons of Almaden Cinema 5 are mostly families who are wary of a marquee filled with R-rated titles.

"We ultimately want to show upscale family movies," Gunsky said.