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Yes, you will definitely see the difference between DVD resolution (720x480, 0.35 megapixel) and your HD65's native resolution (1280x720, 0.92 megapixel). Almost 600,000 more pixels of actual resolution.
Upscaling can't create detail that isn't there. Only Blu-ray discs will use the full capability of your projector. And the difference is actually more obvious on a large projected image than on a small TV screen.
I currently have a 720p projector and the difference between DVD and Blu-ray is like night and day on my 11-foot screen.
Keep in mind that Blu-ray players may get cheaper closer to Christmas.
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