Lip Sync delay
The additional processing and scalling steps used by most HDTVs, LCDs, Plasmas, and Front projector can cause the video to be delayed by a few frames which equates to 50-100ms. When the audio processing (from the receiver) gets to the listener before the video, this can cause the user to observe the "lip sync" problem. The lip sync delay accounts for this problem by delaying the audio for a perticular input by a user specified value. It is possible that a perticular projector or HDTV will have 'fast' video processing and not introduce a significant delay. Also, sending the projector its native resolution might minimize the delay.
I also plan to use my receiver with a front projector so I considered this feature a necessity.
This feature is starting to become standard on most receivers:
Yamahas in the last 2 years have it.
Denon '06' models.
HK 235 and up.
Pioneer high end models.
Onkyo ?