The adjective pixilated is unrelated.
1) Pixelation is a term sometimes used to describe the act of turning a printed image into a digitized image file (such as the GIF file that is used to display an image on a Web page). As the image is captured, it is processed into a vectorized or rasterized file that can be used to illuminate color units called pixel s on a display surface.
2) Pixelation is the display of a digitized image where the individual pixels are apparent to a viewer. This can happen unintentionally when a low-resolution image designed for an ordinary computer display is projected on a large screen and each pixel becomes separately viewable.