Thanks for the feedback gang. Still having issues with the 720p conversion. I tested the cable box and the ps3 on all my 1080p tvs in the house and no issues, so I think if there is a fix it must be with the projector. Best fix I've found so far is to resize the screen from native to natural, but that's kind of a pain.
As for the 2D picture. All I can compare to is my old Sanyo Z3, but man what an upgrade. Great colors, strong blacks. I've heard some comments about this baby not being bright enough, but in my room it's a perfect. 3D is still where i'm blown away though. I watched resident evil 3D last night and sat through the first 15 mins with my jaw dropped. Now my 50 inch samsung 3d TV looks like a toy compared to this.