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The 4805's faroudja deinterlacer is far superior to the deinterlacer in the Phillips DVD player, that's why you see the stairstepping in your picture.
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Ohhhh, of COURSE, that makes perfect sense. I should have realized that if the projector isn't doing the deinterlacing, then something ELSE has to be doing it. Thanks Brian!
Jim, I'm not sure what you mean. You're saying I should take the component cables coming from the DVD player and adapt them into S-Video before inputting into the 4805?? That seems a little odd to me....