Here's the information about the Digital Cinema System Specification.
http://www.dcimovies.com/
Here's the 156 page spec.
http://www.dcimovies.com/DCIDigitalC...emSpecv1_2.pdf
I don't think we'll be seeing any $199 software packages for encoding to this standard for a while. Looks like you'd need to send your master to a specialty service house in LA for the "digital transfer". But it's gotta be cheaper than printing films - if you forgo copy protection and keep it simple.
The nice thing is not only that it's hardware based, but almost every projectionist in the country will be trained on this system in the next five years.