Interesting. Thank you for the info. The Blu- ray player is a Panasonic DMP-BD30K
On a semi related note. i could still use my old componenet cables for the video to the projector but would i still get a good 1080p image - or do i need the hdmi to get that quality picture
i ask because this may fix the whole issue
So, we are back to a few basic issues.
1. The Panasonic 30 does not have good upconversion of DVD video. This is a known issue with the BD30 and when Panny released the BD35/55 players, this issue was significantly improved. If you want the best image possible, you will need the 'upconversion' of the DVD to take place outside of the Panasonic.
2. The Onkyo may do a decent job, but if you are already sending out HD video from the BD30, then the Onkyo likely isn't touching the signal, and while the onscreen menus could affect things, from your follow up posts, that doesn't sound like it.
3. Not sure about alternate configurations, but it sounds like you have some playing around to do with the Panny. I would try to keep the HDMI in the path, but would maybe try to output DVD at a lower resolution if possible. It may not be possible to choose two different resolution outputs, one for BD the other for DVD.
You aren't doing things wrong for sure, but you definitely aren't getting the most out of things right now. If your receiver supports it, you may want to add a DVD player along with the Blu-ray player. Kind of a pain, but you may get better results overall by doing things this way.