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Although he already filmed some scenes, it appears that Daeg Faerch will have to be recast as the young Michael Myers. Apparently the actor has grown quite a bit since his first portrayal of the iconic masked figure and since his scenes are flashbacks, it wouldn't make much sense for him to be taller. Here's what he had to say on his Myspace:
"SADLY, although I was contracted to reprise the role of young Michael Myers in the upcoming H2 (Halloween 2, 2009) after filming briefly on the set in GA, I am to be recast due to my increased height"
More details on H2 can be found here.