With a well-mastered DVD, using some Home Theater Tools, you can come extremely close to a good quality HD source.
Recommend looking at the following:
nVidia NVDVD (codec)
AnyDVD - Required for Dscaler - Region Stripping of DVD
Read through the posts on this board to see how to use these.
Remember, a HTPC with DVI out going to a Digital Projector with DVI in, is the only way (at least that I know of) to easily get a 100% digital quality hi-res signal into a projector. Using these tools you can improve the signal so many ways through tweaking you will be able to get the best image possible.
Due to the restrictions and copy-protection circuits built in to todays best DVD players, there is no way to get an image comparable to a good HTPC DVD image. Though many will claim that the image from some high-end DVD players is at least equal, they can not claim the flexibility of a HTPC (however, they do have the edge on usability).
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