A friend just bought the same LG dvdp and is using the component video to 'upconvert' on his Toshiba rptv.
Not surprisingly, the image change was extremely mild and was about the equivalent of turning a 72dpi jpg into a 200dpi jpg. Edges were rounded and the image took on more of a soft film quality, but as for 'higher resolution', not a chance.
The upconverted image doesn't hold a candle to a 720p HD image. It did cut off an inch or two of picture at the bottom though.
I can't say what the quality would be like for any front projectors. It still comes down to the upscaler and it ability to take a lesser resolution and format it to fit the projector output. Using something like the LG may produce better results than the upscaler onboard the projector but from what i've seen, it is not anywhere near as good as people are reporting. Upscalers are limited to the information in the original lower resolution material and that is the bottom line.
