Well my Panasonic PT-AE4000 is on its way and my Anthem d2v is on it's way back from repair. My question is with this set up should I be using the scaler in the d2v or is it jsut extra?

I had a non hi def projector and was using componment directly out of my AV Atrix switcher to the projector and sending audio via coax to my processor. Should I use/run HDMI now tot he projector? and should I be using the video section of the D2v, will I get a better picture or is it just extra wire?

I have no doubt that the deinterlacing/scaling abilities of the Anthem with it's Sigma VXP processor is going to be better than the projector. However, it may not be better than your source/s. What are you using?

And yes, HDMI will be superior