Yes it is (Score 0)

I used to work at a large cinema multiplex, and i _have_ seen the same movie both digitally projected and the old-fashioned way. IMHO the difference is even greater than VHS vs DVD, the scratches and the overall blurry picture of analog projection looks like those early silent movies after you've seen something on digital projection.
You really should go and see it for yourself , if there is an opportunity.

The only problem they had: the harddrive was too small, so they could only play the shorter movies ( 100 min.) on it... :-)