The NY Times has a new article on digital filmmaking and projection. Here's a short clip:

That is what George Lucas, the creator of "Star Wars," did with the newly released "Episode II < Attack of the Clones." The film, which Mr. Lucas directed, was shot using a prototype Sony high-definition video camcorder. Digitally created characters and effects were edited in later to the live-action sequences. Even the sound was captured using a digital recorder.

Film was used only to create negatives and prints for distribution to movie theaters. In the small number of theaters around the country with digital projectors, "Star Wars" went from storyboard to screen without a single frame of film being used.

"I'd never go back to shooting film," said Rick McCallum, the movie's producer. "And I know George wouldn't either. We wouldn't have risked hundreds of millions of dollars if we didn't think we could achieve the same or better quality as we could with film."

Getting the image to look like film was made possible by Sony's development of a high-definition camcorder that records at 24 frames per second, the same speed used by motion picture cameras. The images are captured in a "progressive" format, with an entire frame created before the next is drawn. That eliminates the horizontal scanning lines seen on a television monitor.

"We can completely emulate the film look with the HD camcorder," said Laurence Thorpe, Sony's senior vice president for content creation. To duplicate the contrast and color of a particular film stock, users upload a statistical profile of that stock from a computer into the camera.

Shooting the movie on video saved both time and money, Mr. McCallum said. While the videocassette used in the Sony camera costs $65, a roll of film costs thousands of dollars by the time it has been processed and converted to a digital format for editing, said Mike Blanchard, the film's technical supervisor. Each Sony cassette has a 50-minute capacity; film cameras usually have to be changed after 10 minutes of filming. With fewer interruptions, some actors find it easier to develop their characters.

Motion picture film must be processed overnight before it can be viewed, but video images can be screened immediately. While shooting, Mr. Lucas simultaneously watched the action on several 50-inch wide-screen plasma monitors near the set. When he decided he had a good take, he gave the order to move on to another shot.

And one final note:

"Digital production today is the worst it will ever be," Mr. Blanchard said. "One day we'll remember how "Star Wars' helped drag the film industry kicking and screaming into the digital age."

Thanks to Jake for the link!