Eric, just to re-emphasize the point, the Z2 is a 720p display device. If it gets an interlaced input it always has to convert it to progressive before it can show it. Likewise, if it gets something other than 720 coming in it has to add(or subtract)pixels to make it fit its 720 display. A 480 DVD output scaled to 720(by either the player or the projector)doesn't have the resolution of a "real" 720 source, but as Randy points out, it can look very good.

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Enjoy the music, not the equipment.