The definition of 'digital negative', as used here, is an inkjet-printed facsimile of the traditional film negative, usually larger than the original source.  The file used to create the digi-neg can come from scanned film or from a digital camera image file.  The situation can get confusing because the digital image file is often a DNG (Digital Negative), the publicly available archival format for the raw files generated by digital cameras.  The overlapping definitions may cause confusion, but the inkjet negative itself couldn't be a simpler thing.   

I can't claim any special tricks for making digital negatives.  Through trial and error I've developed a system that works for me, but I still don't rely on 'one perfect workflow' for all my printing.  I'm not particularly interested in canned profiles or any one-size-fits-all technique.  Most of my work is limited to Curves and selective use of the Burning and Dodging tools in Photoshop (CS2).  Some images work with a single negative and for others I use a form of old-fashioned unsharp masking / contrast control masking by registering two layers: the negative and its low density, low contrast positive (printed so that the printing lines of the two layers run perpendicular to each other.)  As with all things artistic, there are many ways to express a vision, but if you are uncomfortable with devising your own strategy there are a number of published systems for making great negatives.

(Update 10/22/09: I have added a significant new section to the Silvergum pages, here The information expands the use of digital negatives to include color separation negatives for gum printing.)

The important thing is that handmade paper is a wonderful substrate for enlarged negatives made with an inkjet printer.  Currently, I use an Epson R2400 with matte black ink on Pictorico OHP film, printed at 720 d.p.i.

Below are several comparison examples.  An unfortunate fact of scanning textured paper comes into play here.  In life, the blacks on the paper are deep and glossy.  When scanned, the light hits the microscopic hills and valleys of emulsion-covered paper fibers and the result looks rough and matte.  I ask you take my word that there is little visible difference in the appearance between the prints on watercolor paper and the prints made on commercial paper except that emulsion on  hot press-surfaced watercolor paper has a depth and dimensionality that makes a baryta surface seem a bit lacking for something.