I've been there!
I feel your pain mate - I've been through the same scenario (very similar setup to yours) and it's very annoying when you oulay cash for a brand new state of the art receiver only to find that you've got a list of annoyances the length of your arm to iron out before you can just sit back and enjoy! I guess they're packing so much into these things today that you're going to have teething problems.
Anyway, back to the problem at hand. This is at least one that I've found a solution to - hope it helps your situation. I also have a Denon DVD 2900 running component to Yamaha 2600. I then have a DVIGear HDMI 10M SHR cable (great quality according to audioholics) running to my Infocus Screenplay 7205 projector using a HDMI to M1DA adaptor at the projector end. I also lived with the dreaded "HDMI Error - HDCP Error" for the first two weeks - trying many different things and contacting all companies involved. Finally came up with the idea of updating the Projector Firmware (cost another 80 bucks to buy the special infocus only cable to do this) and presto - HDMI is working
Check to see if there is new Firmware for your projector, as this may have a fix for HDMI synching or something like that.
On a side note - don't expect the sun to be full of light at the other end. I'm in two minds as to which signal is giving me a better picture, as each has it +'s and -'s!
Whilst HDMI is giving me a very noticable crisper, clearer image (and I stress very noticeable), it is also washed out in colour, and I've got no idea why? Looks fine until you to an A B comparison and notice the lack of colour. And for some reason when you use HDMI there is no colour control (confirmed this on DVE Essentials Info). I've fiddled with the Colour Gains etc. but can't seem to replicate the beautiful colour I'm getting via the component cable. Not sure which setup I'll eventually settle on?
Another side note - although I've now got HDMI working - I'm still missing out on one of the whizzbang features they drew me away from the DENON 3806 and towards the Yamaha 2600. Hoping I'll eventually find a solution for this one to! Still can only choose through for upconversion on HDMI. I want to choose 720P or 1080i to better match the projector, and use the newer scaling on the receiver (projector is 2-3 years old now), but alas, these options are greyed out.
Hope you find a fix! I know how your feeling - when something isn't working as it should, you're left wondering whether you've made the right decision. Things just don't seem to work as easy anymore. Like everything in life - we tend to make things way more complicated than they need to be - for the sake of supposed beneficial choice and cometition.
Good Luck
