Is the 1080p output setting just for games or movies too? With the HD-DVD player added on, does the Xbox 360 Elite output HD movies in 1080p or just 1080i? Thanks!

HDMI or VGA it will do 1080p. Component it'll only do 1080i for movies even though it'll do 1080p for games and dashboard.

It should be noted that a very small amount of TVs will accept 1080p through component.

I'm pretty sure HD-DVD can't be sent 1080p component even if the TV accepts 1080p over component.

Even if it only outputs 1080i, a good tv will deinterlace the signal and show 1080p anyway.

I was thinking of getting the Epson V11H245120 Projector, which can display 1080p. I don't know if it will deinterlace a 1080i signal.

Yes, it would have to be able to deinterlace. It can only display progressive.