I'm using TheaterTek DVD software on my HTPC which has custom aspect settings. In the latest version, it will automatically scale the 2.35 movie for constant height users. I love the quality of the picture to, wow. What is nice is that you can set your video card to 1280 x 720, so you get a 1:1 match to the projector. I was in the same boat with you using my Z2/Panny S97S combination, it only worked via component and 480P. With the HTPC it is not an issue.