Saturn,
In reply to:

Thats weird my Rotel RSX1065 does the video switching.



Video switching and S-video/composite-to-component upconversion are two totally different things. Are you sure that the Rotel and NAD can do the upconversion? I visited their web site, but the online catalogs do not say anything about it (since it is an expensive feature involving quite a few additional video chips, if it does they most likely say it does).

As Semi says, only a few higher-end receivers from Denon, Onkyo, and Pioneer will do the upconversion as far as I know. Among the receivers within my budget (less than $1000 street), only the Denon 3803 does it. I understand that many people buy the Denon solely for this feature. However, to complicate the situation further, the AVSforum et al is full of user reports that the 3803's video upconversion is sometimes problematic (loss of sync, etc).

Anyway, since I have a multi-device, macro-capable remote, the convinience gained by the video upconversion within the receiver can easily be simulated by the remote.

With regard to video scaling/deinterlacing, the projector I bought (Yamaha LPX-500) has an excellent onboard scaler based on the Faroudja chips. It is said to be actually better than most separate scalers. So, I decided to feed everything to the projector as is, and let the Faroudja do the job (btw, I have no desire to go into the HTPC right now).