When I was working for I-MAG VIDEO I used thier projectors with MilkDrop.
It looked alright, but didn't seem to react to music as quickly and detail wasn't the best. Then again the computer that I hooked it all up to wasn't then best either. I imagine had I brought my computer in that it would of looked great.
What size screen are you using?
For projectors and screens check out www.ImagVideo.com
actually, I just visited this site for 1st time in almost 6 months, and now I think it's trying to install spyware. It trys to get you to install it.
I think its the site but not sure.