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I own a 50" TV, and at that size, I can easily see a difference between even 720p and 1080i content downconverted to 1366x768 (the max resolution for my TV). I have a hard time believing that I wouldn't see a difference between 1080p and 720p.

If I stand more than 13 feet away, though, this difference is very difficult to distinguish. With a projector, as with a TV, it would have a lot to do with how far away you are from the TV.