{sarcasm on}
Yes, your Onkyo should convert it....
If you bought that model of Onkyo.
Or - NO! Your Onkyo won't cover it....
If you bought that model of Onkyo.
You didn't say though.
I bought a Cavalier, and I expected it to perform like the Corvette I had taken a test drive in. They are both Chevys after all. Right?
{sarcasm off}
Always provide model info when discussing a product in question. A brand name doesn't cut it as there are many models. But, most likely, your Onkyo doesn't trandcode from composite to component video and if you want to see your VCR on your projector, you need to run a composite (yellow) cable from the Onkyo to the projector.
Some receivers to convert (transcode) between composite, s-video, and component. Some new ones even upconvert to HDMI, but it will say so specifically in the owners manual and often on the specifications for the product.