Over the weekend I dropped a roll of color film off at Walmart. I had no desire to kill time for an hour for regular 1-hour service so I dropped it off in the bin that gets sent out. There was an option of cheaper 3 inch prints instead of the standard 4 inch prints. I noticed that photo CDs are not available with the 3 inch prints. My logic is that if the 3 inch prints were scanned and printed digitally, then the data would already be in the system for a photo CD, so it's most likely optical. Upon getting my 3 inch prints back and examining them with a magnifying glass, I'm convinced that they are the real thing. I haven't seen as much fine detail in a while.