umm... how pixelated the image appears is not only a function of how big you project it, but also of how far your audience is from the screen...also, how far you can project is a function of your projector, as well as how much ambient (competing) light is present.
the pixel size of the MiniDV format is 720x480. Theoretically, you could figure out the size in inches each pixel will be if projected at a certain size... you'll also want to consider aspect ratio. Many larger screens assume that you will be projecting in 16:9, so you may have extra screen to the sides seeing as how MiniDV is a 4:3 format.
When you decide what projector you want, search for a throw projector of that model, that may help immensely.
I would say on resolution, basically if you audience is seated far away enough that the front row can see the entire image (and then some...), it should be alright. Granted, HD or film would be much sharper, but without a direct comparison, people shouldnt notice the difference too much.
Good luck!