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That should work just fine, and if the AV receiver is sending out the HDMI signal you shouldn't have any EDID or HDCP issues either.

thanks for the PSA, I too have had similar problems with power cycling and needing to power things on in the right order. I think in my case it had to do with the TV not being able to read the EDID info from the video source correctly unless i turned the TV on first, and then my set top box.

monoprice has some pretty inexpensive stuff sometimes, but i guess its like roulette, who knows when the next credit card breech happens over there?

The Xbox360 component cables can do 1080p (though lots of people think they cant). However,if it is an older projection TV I bet that the TV is the reason you are having problems with the picture quality. Good move switching TVs.