You ARE missing a major improvement in PQ for HD channels. You will need some kind of transcoder or video processor to go from component to VGA. Check Key Digital among others.
Getting HD cable signal to Infocus X-1 projector
Trying to get a proper HD cable signal to my Infocus X-1 projector. Problem is the box has component and DVI-D connections. The projector only has VGA, S-Video. Right now, I'm just running S-Video out of the projector, which is not terrible on HD channels. Just thought I may be missing an even better picture available.