How do projectors upscale SD DVD compared w/ TVs?

Or perhaps I should be more specific and say I am about to set up a basement home theater with a Mitsubishi HC1500 projector (720p, with 1 HDMI and 1 component) and probably an 84" screen. I plan to watch mostly standard DVD and some TV programming via FiOS. I know they say most current HDTV's do a better job upconverting than the DVD player itself (except for maybe an Oppo?). Does the same hold true for projectors? Could they be even BETTER than TVs at upconverting, or is it apples and oranges?

Part of my dilemma is that I only have 1 HDMI port on my projector. I figure better to feed my FiOS signal into that since it's a true HD source, and use the component connection for my standard DVDs. I have an upconverting player which I'd like to keep connected to my smaller LCD TV upstairs, and a backup progressive scan player which I though I could use for the basement home theater and the Mits HC1500. I know I should just try both and see if I notice a difference, which I will, but I'm also just academically curious as to the processing capabilities of high-def projectors vs. HDTVs. :o

Most of the HD projectors have very good scalers.

I'll second that...the top rated PJs are all very good at upscaling and deinterlacing. However, there's no reason to not test the Mits against your current players.