I'm not even going to start on the whole PAL/NTSC progressive output capabilities. The reasoning was that there is no dominant HDTV format in Europe and no HDTV customer base
Anyway, if you like progressive scan (and I'm guessing you do, cos I do too), you're gonna have to stick with NTSC washed-out colors and a somewhat diminished resolution.
One other point: Don't enable the higher resolutions!
What happens then, is: You upscale everything to 720p or 1080i, and then the projector downscales it again to 480p, to be able to display it.
The absolute best picture you can have with the 4805 is 480p, which happens to be the projector's native resolution.
Of course if you actually don't notice any slight artifacts, blurring etc. its completely up to you.