Thanks Barry, wasn't worried about the upscale at all, just looking for a convincing argument to use mjpeg, but if lpowell isn't making one, that's the end of it for me.Standard-def footage has been projected theatrically and looked fine to the audience. Don't worry about it.
We've shot stuff on the UNhacked GH1 with its awful codec, and projected on a reasonably large screen, and it looked fan-frickin'-tastic.
If I was in the position you're in, I would have no hesitation whatsoever - I would use the 1080/24p mode.
In another thread, someone is quoting you recommending a 1 to 1 ratio for shooting a more filmic look, ie: 30p at 1/30. Is he/she quoting you correctly?