Just a quick question is there a difference in quality of video signal between HDMI and Component?
Well, there can be.
Most upscaling DVD players don't scale over any output aside from HDMI. There was an Oppo DVD player that did this over component I believe. I also believe they make a device that can convert HDMI and other HDCP complient inputs to RGBHV, RGB, or VGA, but they are imports (US does not allow sales of such products because they are evasive of copyright protection). I have not looked into it for some time, but this is the closest I can find to a device that would do this correctly.
http://www.ramelectronics.net/audio-video/adapters/dvi-component-and-vga-adapters/dc-da1/prodDCDA1.html
You would need to also purchase an HDMI to DVI adapter to connect the HDMI source to the converter, then a VGA to Component (unless the projector has a VGA input).
I would like to add that a device like the one pictured below will not work with HDCP compliant sources. Blu-ray and HD DVD players for example will not work with this adapter. An upscaling DVD player might work with it though, but I can't be certain that it would. So long as Blu-ray and HD DVD continue to allow HD over component video for the High Definition discs you should be all set.
Edit: this is a link to the site with the image, for some reason the image will not stay.
http://www.pccables.com/cgi-bin/orders6.cgi?action=Showitem&partno=01778&rsite=f.01778