Hi there,
I had A similiar problem before I upgraded to SKY HD.
I was trying to convert scart to component. After buying loads of cheap cables from ebay I finally resolved the issue by buying a box from these guys -
Component (YUV) to RGB/VGA Converter: J.S. Technology
They are brilliant.
It worked a treat and with decent cables i got a half decent picture.
If your projector has component cables and you aren't quite ready to step up to SKY+HD, then this will work a treat.
The box is expensive as it is quality, but I have one surplus to my needs, if you are interested in buying, PM me and we can thrash something out.
I would advise against the earlier post of S-video connection. Gave me a rubbish picture.
Good luck
Iain