• Answer

The panels in a LCD projector have a fixed resolution and work best when fed with a picture that has the same number of lines. The image quality benefits in matching the resolution of your projector to your source computer are considerable, as the projected image will then match your computer image pixel for pixel, giving the best possible reproduction.

If the source has more lines than the Projector then some have to be thrown away, losing picture information, while if the source has too few the picture will not make full use of the projectors resolution. However, Sanyo projectors have advanced technology that automatically detects and resizes pictures seamlessly no matter what native resolution they are.