genlock or alpha channel work can be done manually or automatically depending on the software. usually the process involves pasting white dots on the wall to get a registration mark to guide movement with.
green is usually better for long distance and blue can be better for closer distances, but not always the case. I noticed this when I visited my friend who helped paint sets at fox studios in sydney for the last 3 starwars films. btw 90% of the sets where blue or green and had a series of white dots on them. In television news reports this is why all the presenters have slicked down hair to get a accurate sillouette and no fuzzy bits.
some good references can be found here
http://www.imagecels.com/im04006.html
http://www.techtv.com/screensavers/answerstips/story/0,24330,3399463,00.html
http://www.bloomfield.edu/towsen/dv/DVtutorial17.htm
http://www.cinematography.net/CML%20Blue%20Screen%20vs%20Green%20screen.htm
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