1) I will say two things about the legal aspect of this crap. Hollywood is clearly violating our 'fair use' right (laws dating back to the 70's) everyday with all this BS.
And obviously anyone can sue anyone else for anything they like. If you are an 800lb gorilla, you can usually win.

2) Everyone of these boxes I have seen, did NOT have a good picture on it. There was obvious smearing, edging, or other problems with the picture (sometimes all of those). The only one I ever seen do a perfect job, was the HDFury. But of course it was much more expensive. Lesson = you get what you pay for.
I would have another closer look at that picture on the projector. I would be willing to bet money, there is artifacts and/or problems being introduced by that cheap crap box. Or maybe the projector is looking so bad, no one can tell  anymore?