After spending some time watching it last night the verdict is:
Fantastic. BUT it does look a LOT better if you turn all the lights off in your viewing room. We were watching it with a table lamp on and I was asking if this was a dark programme (we were watching TV over composite video). Turning the lights off made a big difference.
At the moment the projector is set up in a very non-ideal manner since it is projecting onto a white wall, using both horizontal AND vertical keystone correction.
However - the image is still very very good. Obviously the image on a good DVD over component video bears no resemblance to broadcast telly over composite but the telly signal is still very watchable.
I watched parts of "The fifth element" , "Monsters Inc" , "Attack of the clones" and a robbie williams concert and all of them looked very very good on DVD. The colours were rich and saturated and the black levels were fine in my opinion - no they weren't CRT jet black but black enough to be believable.
Does anyone know whether the feed from a sky box is WORSE than the feed I currently get from my video recorder for broadcast TV? (I have a good aerial and generally get a very good picture on a normal TV).
On the subject of the missus... Well she didn't react all that badly really. Besides I had to get my own back because she put my shoes in the bin over the weekend and filled them with beans so I was forced to go shoe shopping ....