The film or digital projection will win every time. its the original size and source. After that its all secondary recording with compressions as already stated. theres going to be a loss somewhere, just so it works on your tv and dvd player. If you look carefully at some films on dvd you can see the compression a mile off. Worth noting is that Star Wars Epsiodes 2 and 3 were shot digitally on RGB 12bit panavision cameras. The frame size is actually smaller than a 35mm camera...go figure that one! Anyway the transfer to a standard DVD would intially be of a better quality being digitally sourced, and therefore once George pulls his finger out of his clone and sticks them on blu ray then we should see something a bit more superior copywise on a blu ray disc as well. Even though compression will still come into play the recording should be better overall. Thats my theory anyway Jay