IMO an IScan will not be good enough for a projector of that caliber, I feel it deserves better. A Quadscan or a HTPC I feel would do a better job. With 480p that the IScan does scan lines will be very noticable inless your screen size is very small and you set very far back. If you go the HTPC route or a scaler you shouldn't need a progressive scan dvd player it will do the deinterlacing for you.
A low cost tv capture card and dScaler will to a fine job. I however use a DTC-100 to my projector with Direct TV because I wanted HDTV. If your going the Dish route the Dish 6000 will scale your SDTV pretty well. The lowest cost solution is the Capture Card/dScaler option and it will do a better job of scaling than the set top box but of cource no HD. Do some research in the HTPC forum because not all capture cards are supported in dScaler.
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