35mm prints...
Of course I can't speak for all distributors... However, I do know some people that work for distributors and I've been told that an offering price definitely goes UP if you have a 35mm print of your feature even if it was shot on DV. In fact, I've been told that if you have a 35mm print of your DV feature, your film (all things being equal of course) is taken more seriously. One friend of mine that works for a distributor has also told me that if the film is really good (and you already have a 35mm print) a distributor just might pop for a limited theatrical release but again, the film has to hit all the marks and be watchable.
So, from what I gather, if your film is good (meaning people can actually sit through it from beginning to end without getting bored out of their minds and can follow your story), having a 35mm print is a definite plus. Not to mention the fact that if your film is that good and a distributor is willing to take on the cost of a 35mm film transfer, they will almost certainly overcharge you up to 3 to 4 times the actual cost. One of my distributor contacts says that having a 35mm print definitely gives you, the filmmaker, more bargaining power.
Take it for what it's worth... 3rd hand information and all that...
As for festivals requiring a 35mm print... There are still some of these around although I don't know which ones. Having said that... I've also heard that HAVING a 35mm print available for festivals can often swing a decision in the filmmaker's favor of getting accepted.
Again, 3rd hand information...
filmy