(Un)fortunately I started to see some color issues on the Xbox, thinking that the component to HDMI converter was bad and decided to connect the Xbox directly to the projector. Had to move the console right next to the projector but it was worth the effort. Problem solved! So I dragged my Apple TV from downstairs and connected it to my wireless HDMI transmitter and I had no detail again, even though the source was set to RGB. So the problem was the wireless HDMI transmitter all along. The transmitter claims that it supports sending an RGB signal but I guess it must default automatically to something else and there is no way to fix it. Oh well. At least I found the problem.
So the moral of the story is before you think about sending this unit back as defective or getting frustrated after trying every menu settings, connect your source directly to the projector in order to eliminate any cause in between. It's a great projector, by the way!