Peter & Ken,
Let me answer Peter's questions first, then I have a couple of my own for Ken.
I wouldn't say the 40t is noticeably brighter than the 38t except in one important respect: In reasonable ambient light there's no longer any trace of wash out.
As for a scaler, I'm currently using an iScan Pro for deinterlacing, with a vga -> component breakout cable into the component inputs on the projector. So, the 40t is scaling internally to XGA. The result is a noticeably artifact-free picture, although it's a little soft for my tastes, but the softness is dye to the (lack of) quality of the compressed DSS signal I'm sure.
I briefly tried going directly into the projector via s-video and the result was also good (although I'll have to try it again to get a better look). The real reason not to do so, however, is that if you're using component input also (as I am) the component input overrides the s-video even if there's no signal from the former. So, in order to see the s-video signal you've either got to go into the projector's on-screen menu and manually change to s-video, or pull out the component plugs. To my way of thinking this is the worst thing about the projector. Of course, that's also one way of saying how good it is.
I haven't hooked up a PC to the projector yet, although I did with the 38t. I didn't notice the blurring you're seeing, so I'll have to check again (Sheesh. . .more homework!)
Thanks for answering my question about the Panamorph and ISCO. I've read a lot of posts about them and visited the websites. I'm still not clear on a couple of things, however.
I bought a 4x3 screen, even though I wanted to buy a 16x9. The reason I wanted to go with the 16x9 was the thought (expressed elsewhere in the forum) that if one picture has to be smaller than the screen, better it should be the 4x3 because that's usually DSS, which is the inferior picture. Why blow up the worse picture?
The reason I went with 4x3 (bear with me, I'm getting to my point) was that I was told that, with a 16x9 I'd still have lots of light, albeit black, above and below the 16x9 (or other letterbox) picture because of the projector's 4x3 panels. Even with appropriate masking material, I knew that light would bother me.
If I understand what a Panamorph will do correctly, one thing would be to eliminate that black light above and below the 16x9 picture. Am I right?
My bigger question, though, is what happens to a 4x3 picture? When the Panamorph squishes it vertically into 16x9, is the result horizontally stretched people, as with an RPTV in Standard mode? Is that why one moves the lens out of the way for 4x3 pictures? Or, is the result a 16x9 version of the picture, with objects not being stretched horizontally (that's got to be too good to be true).