The 1024x576 resolution should be ideal to scale 1080i into 540p, so HD material should look great (720p will not look as nice). There is also enough resolution to capture 480p material. It will all depend on the scaler and how it will decide to display the image in the DLP grid. A HTPC would ensure that you will be able to display your material in the preferable resolution. If you go to 854x480, then HD suffers, (Although 4805 users seem to be happy with scaled HD on their projectors).
WXGA seems to be the best of both worlds, if you prefer the LCD picture. If not, the 576p DLP displays are a nice compromise. If you want a 3rd option - get an XGA projector and a panamorph lens.
WXGA seems to be the best of both worlds, if you prefer the LCD picture. If not, the 576p DLP displays are a nice compromise. If you want a 3rd option - get an XGA projector and a panamorph lens.