Help; N64RGB--> RGB/Component-converter--> Projector doesn't display correctly

[metrolf]

Once again I find myself coming here, asking for advice from the clever folks residing in these forums 
I actually managed to cram basically my entire problem into the title, hmm  However, I'll explain further:
I have a N64 with an RGB-mod (http://nfggames.com/forum2/index.php?topic=5011.0) connected to a Scart-to-Component converter, which then connects to my AV-receiver which converts it to HDMI before the signal finally is fed to my BenQ projector.
This results in a decent picture, but it produces a horrible lag.

So I decided to try and minimize the problem by connecting the component signal directly into the projector. The lag is significantly reduced, but unfortunately it seems that the projector messes up when it's being fed a low-res component signal.



Originally, I would have accepted defeat at this point, however I tried Majoras Mask to try out something. I've heard somewhere that a few games displays in a higher resolution (Donkey Kong 64 works great), Majoras Mask being one of those games, albeit only to a certain degree; only by entering the "Bomber Notebook"-screen will the game display in a higher resolution. Then, by making the projector search for a signal yet again on the component input, it displays perfectly! I somewhat expected this to work and I also suspected that by going out of the bomber notebook-screen would revert the resolution back again, thus making that weird "fuzz" return. However, it did not and the game is displayed correctly, even after hitting the reset button on the N64. I believe the resolution actually DOES change back, except the projector doesn't notice it, or something Turning the system off, then on (changing games or not) will cause the projector to search for a signal again and then we're back to square one 

So what happens is this:

Starting up any game (except DK64) results in this kind of messed up picture as shown above and below, but by going to this screen;


...then pressing the component input button on my remote, making the projector re-search for a signal on that input, results in this:


...If I then go back out of this screen, it's still nice:


So my questions would be:
First off, do any of you agree with my theory of what is happening? If so, is there any way of making my projector NOT search for a new signal when the N64 gets turned off? (Apart from obviously adjusting the settings, which I've been trying restlessly for quite a while now...)
If not, any ideas on how to possibly make my AV-receiver convert the component signal a bit more effectively? (I set it to send the resoultion "trough", but that obviously didn't happen, seeing as how that actually worked... But that was on the hdmi input on the projector, so maybe it has a lower minimum resolution limit or something )

Anyways, I hope that someone would be kind enough to reply in any way possible. It's not bad the way I have it set up, but the reduced lag from letting the video-signals bypass the receiver was very nice and would naturally be preferable.

Thanks for taking the time to read

[Grambo]

Check and see if your AV receiver has any sort of "game" mode. That is, something that will reduce all the processing it's doing and, therefore, reduce your lag.

If not, get a better scan converter because your AV receiver is slow and your projector doesn't like 240p.
http://retrogaming.hazard-city.de/

If you get something with a VGA output, your overall lag may be better. Projectors do less processing with an RGBHV signal.