mtrycrafts i really appreciate you staying on top of this thread this is my first time posting on this forum and i guess like most where most get read but not as many people reply. I will be doing some hard core tweaking and rewiring today. I have known for some time that the sound wasn't quite there but never had the time till now so when i started tweaking i thought i could get it fixed fairly easy but when i coudn't that is when i posted i usualy don't ask for help. So let me tell you about the video problem some more, the other day when i was checking this post i saw something on a differerent thread about the hda2 being sold cheap so thanks to those posts i went out and bought a couple of them so it is hooked up strait with hdmi of course with same problem but less time the picture comes up but if i go into the setup menu or switch inputs or something( to start tweaking) the projector looses signal and once again a clicking sound from the denon 3806...... AARRGGHH!!
also what is your oppinoin on sending the sound through optical vs hdmi?
One more, your oppinon on keeping my oppo for th sd dvd's vs the upconversion on the hda2?
Thanks again,I better get tweaking!
We, including myself, need help periodically , or more often

That should not prevent one from asking as you may save time and energy.
Do you know how to level match your speakers with internal test tones and an SPL meter? Also, make sure you don't swap speaker polarity as that can mess up on your overall sound, giving you an impression that things are not correct, sounds wonder, etc.
As to the video. I can only suggest a few experiments. Don't know that audio capability of that 3806, if it will convert the DD True HD or DTS hi def formats or not. If not, then you have two options. Using your optical or digital coax out from the A2, if it has a digital coax directly to the 3806 and sending the video direct to the projector. Or, using the 5.1 analog in on the receiver and letting the A2 do the conversion of the audio to analog and send the analog to the receiver. In the latter case though, you will have to set up the player for the surround sound stuff, distance to speakers, large or small speakers, etc, as you did in the receiver. I believe you need to set the player to bitstream audio. May need to do this with the satellite Tv also.
But I see you also have a satellite to switch and your projector is 720p capable. It has a DVI-I connection so make sure that your HDMI adaptor is DVI-I and not the DVI-D type; yes, there are two variants of this.

You also have component.
Not sure what your satellite box can output and set for, so you have to figure that out.
You may also want to try component from the satellite and HDMI-DVI-I to the projector.
Once you have your video path that works properly, I don't see needing two players but you may want to keep it as a back up. Unfortunately today this is getting complex as it is computer driven. Hopefully we can fix this. Hang in there and I will try to keep up with you.