you don't need HDMI going to the projector as projectors don't have speakers. DVD and HDMI pass the same digital video so just run your HDMI/DVI cable to the projector, that way you get 720p or 1080i video passed to the projector.

I use HDMI/DVI from my HTPC to my Z2 720projector and HD looks awesome over the air.

M80s VP180 4xM22ow 4xM3ic EP600 2xEP350
AnthemAVM60 Outlaw7700 EmoA500 Epson5040UB FluanceRT85