Thats basically it.
Instead of being projected using 35mm film, it's encoded as 2048x1080 JPEG2000 or MPEG4 and projected using DLP. It's distributed to cinemas either on a portable hard drive (most common) or via satellite internet (most expensive), and then loaded onto a central server.
The advantage is no picture damage associated with 35mm - scratches etc, and no soundtrack damage/drop out; with the only major disadvantage at the moment being that 2048x1080 doesn't quite match a top-notch 35mm image. Sony's new 4k encoding however (at 4096x2160 pixels) and SXRD projectors blow everything else out of the water.
Incidentally, Momentum messed up the digital prints of Painted Veil. The 35mm original negative and prints are 2.39:1, but the digital print is reformatted to 1.85:1.