What is the process for preparing a film to be shot on the Internet? Is it merely a matter of digitizing the film as one would do for a nonlinear editing session?

You question is a little unclear, but I'll take a stab at it.

You've already shot your film and you want to distribute it on the internet? If so, digitize(capture) it, as you would for a NLE edit.

Edit in the native DV format it was captured in.

Render your finished product to you NLE app's native format(QT for Mac, AVI for PC). Save that as your master file. I always save 2 copies, 1 interlaced, 1 de-interlaced. The interlaced one goes back on to a DV tape in case I want to make a VHS version, the de-interlaced version is vor viewing on the web/computer monitor.

Then depending on your NLE app, you prepare the de-interlaced file for viewing on the web(ie compressing it). The easiest way to do this is to use an app like Cleaner Pro with presets for various levels of quality/file size/formats to get the job done. Getting a high quality/web sized file straight from an NLE app is an art form. It takes lots of time to find the right balance.