actually that projector DOES support HD resolutions...
As for needing to "convert" to VGA... no
Most projectors (95% of the ones I've seen) use the VGA port for component inputs also. Meaning you need a simple adapter to input component video.
Looking at the specs it's a pretty run of the mill LCD projector, meaning it's reasonably priced, has a decent resolution, is rediculously bright and has total shite for a contrast ratio. Which pretty much boils down to everything you watch on it will be washed out. Also it doesn't have ANY digital inputs to speak of which pretty much meand you wont be legally watching any movies in HD on it ever.
you could do much better within that price range if you shopped around. At very least something with a better contrast ratio and a digital input
My current favorite projector is the InFocus X3
http://www.projector.../InFocus-X3.htmor if you're hell bent on getting an LCD over a DLP
http://www.projector...enPlay_5000.htm^BTW that one supports ACTUAL HD resolutions
If you want to compair it to the one your talking about:
http://www.projector...m/NEC-VT670.htmthe two other projectors I linked blow it right out of the water in just about ever aspect and are priced lower too.
is the X3 really worth trading off native widescreen for a little more resolution?does it still have the fancy fajodoramajiggy de-interlacing chip in it