For the first part, you can use your screen for 4K, but the quality of the image will always be impacted. Silver screens should basically never be used in homes, so I'm not sure how you ended up with this model other than just buying it because you thought you needed it for 3D, or if it was super on-sale... or some other reason that I don't know.
The gain of the screen likely indicates a heavy optical coating on the surface, which will have texture to it which likely isn't good for higher resolutions. It also may have a narrow viewing cone and poor image uniformity as well as sparkling.
Since I haven't seen this specific screen, I can't swear by any of these things, but it is something that I have seen on similar screens over the years. But, 4K or 1080p won't make much difference when it comes to these specific models.
I haven't played with 4K UHD discs yet so that may be a specific question to ask in another section of the forums. I have a few 4K discs, but no player yet. I think my 4K discs also came with 1080p discs. So, I think you get both in the package. Still, I would ask and see if UHD-BD players will convert HDR discs to SDR. It may not allow it as the HDR discs may require HDCP 2.2 which won't be supported by your 1080p projector.