For decades, film festivals have reliably delivered films to audiences seated in theaters. Now at least two--Sundance, included--are bringing them to audiences in their own homes. The Cinequest Film Festival's plan is to distribute via DVD, the Internet, TV, and some traditional theatrical sales. They opened DVD sales on Nov. 14 with a slate of 35 films they've chosen, ranging from documentaries like "Awful Normal," which one the Best Documentary Award at Cinequest and was featured on Oprah, to independent features, shorts, and international titles. The new initiative partners the Cinequest festival and film institute with the [Bay Area's] high-tech partners and/or soon-to-be-players: Intel by using its Viiv system for managing digital rights, Jaman (a company launching in January), to build world-cinema-watching communities online, and Netflix, for its DVD-buying audience. Susan Gerhard reports.