I purchased a Panasonic PT-DT DLP projection unit. I really should have done more investigation before buying it as it doesn't have Component input. I'm running it through a very high quality S-Video connection to my DVD player yet the ghosting and background defocusing is almost intolerable. I bought a progressive scan DVD player but that will only work with composite inputs.
You should probably look into a home theater reciever that has component (Y,B,R) video switching. Component video will eliminate certain artifacts, dot-crawl, and your current ghosting problem. This will allow you to get the best optimal picture throught the progressive scan DVD, and the DLP. You would also be able to run all of your video through a home theater reciever. Recommended recievers that have this capability: Yamaha RXV-1200, 2200, 3000, and RV1. Denon AVR-2802 and 3802. Pioneer also have a good home theater reciever. Hope that helps!