I would think that since the original HDMI video spec was lower speed than current and the spec was developed from the original DVI video spec, it might not have the capacity for 3D. Someone from Outlaw should be able to tell you for certain. The 990 doesn't process the video signal at all.

This is straight from Blue Jeans Cable and it does not appear that DVI will support the higher bandwidths required of the later versions of HDMI and the newer codecs.

The HDMI standard and its older cousin, DVI, are very closely related to one another. Both use the same methods of video encoding, and send video information down the same sort of cable structure. The HDMI spec requires that HDMI devices be backward-compatible with the DVI standard, which in theory (though, unfortunately, not always in practice) means that whenever you have a device with a DVI connection on it, an HDMI to DVI cable will give you a funtioning connection.

As with all standard-compatibility questions, there are a few caveats.

•First, HDMI is not compatible with DVI-A, the analog DVI format, so it is not possible to hook up, for example, a VGA monitor to an HDMI source by using a combination of VGA/DVI and DVI/HDMI adapters and cables.
•Second, the DVI standard does not support embedded audio, so whenever you're interconnecting DVI and HDMI equipment, you'll need to make sure that you've provided a separate path for the flow of the audio.
•Third, any "new" HDMI features--deep color, different colorspaces, et cetera--are unique to HDMI and will not be supported by a DVI connection (though the two devices should communicate just fine without them).
•Fourth, although DVI has a "dual-link" version which is used to support higher resolutions, HDMI has no dual-link version available (yes, there's one in the spec, but there are no real-world devices that use it); accordingly, ALL DVI to HDMI cables are single-link only, even if the DVI plug on the cable carries the dual-link pins.
•Fifth -- well, some DVI devices are just cranky and will not work properly when connected to some HDMI devices, largely because strict compliance with the DVI standard was not really carefully policed.

All of that should be true for DVI displays and DVI sources. One wrinkle to that is the fact that the Model 990's DVI functions are basically just switching. How Blue Jeans' description of the differences between DVI and later iterations of HDMI may relate to using a DVI switch between HDMI devices is less clear-cut. I do think that it's likely that the Model 990 and other DVI switching devices are going to choke on 3D signals, even if the only way to prove it is to try them and see since the standards governing these two have never been the most perfectly defined...

I think it likely that the switch on the 990 is designed to pass the original DVI bandwidth and maybe a little more since it has been capably doing so for many for a long time. However it should be simple to test the theory by removing the 990 from the pathway and just running high speed HDMI cable. If it allows 3D, game over. Bypass the DVI and use the analog through the 990. Will get much easier (we hope)when the 978 makes its appearance.

Ok I tried going directly from the projector to the BD. Not only did I lose picture quality (which is completely baffling using the higher bandwidth cable) but 3D still did not work. The BD and projector are brand new so what is the likelihood that neither is working correctly.

Gotta be an issue with the settings on either the BDP or the projector. Gonk is the go to guy for setting up the OPPO. Not sure abount the Panny but maybe I will look.