I just bought a used HDConnection transcoder from a member on the A/V Science forums... I was using my laptop as an "HTPC" with crappy stereo hookups for crappy ProLogic I sound (yuck!). Now I can use my regular DVD player so that I can view DVD's at 480p since the transcoder converts Component to VGA (WOOHOO!). The transcoder also handles any input source up to 1080p.
I am using a Sony 1251Q CRT projector that I bought used for $150
Here is Gran Turismo 4 at 1080i:
Finding Nemo at 480p: