No, they replaced the original 70MM film projectors with new digital projectors back in '08. You could tell because when the show came up from its '08 rehab on November 7th, 2008 they had a few glitches where the image would stall and then reset. It couldn't have done that with the old film projectors, and a film projector couldn't catch up and reset itself.
The new digital projectors
dramatically improved the clarity and sharpness of the mist screen images. There were details and scenes that no one knew really existed from the blurrier film of the last 15 years. What they haven't done yet is entirely edit and clean up the original film images, and that's what is coming this summer. Thus far they've just used far more advanced projectors to display the original film clarity. Just like editing and cleaning up an old film for its DVD release, they will debut that process this summer using the new projectors they installed last year. This is also the same technology they are using for the World of Color show, so it's a preview of that if you will.
Here's a YouTube video of Fantasmic! after it returned from its last rehab showing the digital projector glitches that first night. It also has the newly redone Finale' with the upgraded lighting and revamped pyrotechnics.
http://www.youtube.com/watch?v=_0vUsMzOnrY