Captain Chaos,
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What a component fed image does is display all the lines at once, leading to a more stable, higher quality image.
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Someone is leading you astray !!
Component video separates the colour and luminosity components of the video signal - it has no effect on resolution or on the number of lines, or on whether frames are displayed interlaced or progressively. What may be influencing is that progressive scan images are output (from a device that is capable of outputting them) using component video.
An LCD projector displays it's image in progressive scan mode - i.e. it combines the frames of interlaced signals and displays full frames in succession, even if it's fed a composite video feed from a VCR or whatever. Some projectors don't perform this task very well, although there are some which are equipped with proprietary de-interlacing chips which do it excellently.
For further details on the mysteries of imterlaced and progressive scan signals, check out the prog. scan part of the forums and remember that Google is always your friend.
All the best,
Sean G.