DV and Digital Cinema (Score 1)

I think there's a bit of confusion between Digital Cinema and Digital Video (DV). The latter is a low-resolution (just slightly better than VHS, from what I've seen) format popular for low-budget independent films. You can buy a cheap DV camera at Circuit City. The digital cameras Lucas used for Episode II were, as I recall, custom built by Sony. That being said, the resolution must have been a lot higher than 1280x1024 to have looked so good on the huge screen where I saw ATOC. The superior picture quality made the CG sets look fake.

I also recall reading that Lucas tried to force theaters to upgrade to digital projection for ATOC the same way he forced them to upgrade to THX to show Episode I, but very few theaters agreed.