My employers screened their doc, Ballets Russes, at last year's festival. It was a digital HD projection and really looked great.
The video is a mix of interviews, photos, and archival footage. The entire thing was done in SD and then bumped up to HD. The interviews where shot in DV25, primary editing was done in media100 and the compositing was done on Media100's 844 system. Probably the last hurrah for that company before Boris bought them.
The doc is in theaters now, playing from film prints struck from the digital HD master. It's a pretty good example of what you can do starting from little old DV25.
I had nothing to do with the video but was present for several years of editing (open floor plan at our office) and witnessed process. Yes, it could have been done with Vegas and AfterFX and a BMD card if time was no object and if you where very organized. However, when it came time to send it off to Sundance, the 844 was the only way to get renders done on deadline. It's a super-fast compositing tool.
A distributor picked it up. Zeitgeist. Without that it wouldn't have gotten into the theaters it's been in.
<edit> Actually, on the contacts page of the site there is a list of several distributors. This includes Canada, Australia, and the UK. </edit>
Given what I've observed, I'd say that you really need to be as ready to strike prints as you can possibly be if you've shown at Sundance. I know it depends on when you actually want a movie to start hitting theaters, but for docs I think you're better off hitting the ground running right after Sundance. It's a generalization, but if you're in theaters then you're eligible for Academy consideration, and for docs I think you're helped if you've been on the minds of nominators all year.
But this thread is more about digital presentation at Sundance. Of that, I can vouch that they get really good systems, it looks great, and it's possible to look great even if you started in SD resolution.
There is a list of places where the film has played on the website. Those that are currently playing are marked. Film Forum has been the longest run at a single venue but I don't know if it's still there or not. I was looking at the site this morning and saw that there were a couple of places showing it in New York.
The filmakers have gone to quite a few showings to speak before the film plays. It's been a really busy season for them. In fact, they're going off to Bankok later this spring to introduce the film. Busy, busy.
Sundance is definitely a showcase to connect films and distributors. As far as docs go, and once you're in distribution, it seems like audience enthusiasm can really vary from city to city. I'd be curious to know how other docs, like "SuperSize Me" for instance, did in different locations.