Eric A -
You've probably already thought of this, but here's what I do for my similar set-up: I run the component video monitor output to my old analog TV and the DVI monitor out to my front projector. Then I define two video inputs (e.g. Video 1 and Video 2), one that uses the DVD component inputs and one that uses the one of the DVI inputs (both inputs coming from my BD player). When I want to watch the analog TV I select the former input, and when I want to watch the projector, I select the latter.
Actually, now that I'm re-reading your posts, it looks like you're planning to get a new digital-input flat-panel TV (?). In that case, my set-up won't work unless you're willing to feed component video to the new set. I'm planning to do this as soon as my old analog set dies, but since I use the smaller screen only for "unimportant" video, I think the component video should be fine. If I'm watching a movie or HBO series or anything else where I really want a good image, then I always go with the front projector.