I was able to see the fire and projection effects and towards the end of the trip, my parents said a new channel was added to the TV to play Wonderful World of Color so that people who are staying in Paradise Pier can watch and listen as well. They have one for Disneyland as well. I think Disney World, especially EPCOT should consider this!
Also, this is a fastpass event meaning you must pick up a fastpass for you and the rest of your party to see the two showings a night. It is standing room only, but it looks to get fantastic views. I am guessing they are thinking this will be a GIANT hit!
The closer you stand near the lagoon, the more likely you'll get wet, as the water streams up to 200 ft. high, and disperses rapidly.
Disney has outdone itself with this show - any fan of Disney should make plans to see it as soon as you can!