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I have an X1 and the Pace HD box. I have no problem with either SD or HD content.
Remember that your X1 does not accept 480i into the component (15-pin) input. In my setup, I pass SD channels to the projector over s-video (and switch to the Video input when tuning those channels). I pass HD channels into the 15-pin component input (and switch to the Computer input when tuning those channels).
I've you're using the component-to-s-video breakout cable to pass 480i component signals into the projector, you won't be able to send HD signals through that input. You need to use the 15-pin connector and switch to Computer input to see them.
If this issue isn't what's troubling you, then feel free to elaborate.
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