I don't think the NR1000 will pass the 1080p signal, but I could be wrong, maybe someone else can confirm. If in fact it doesn't and you wanted to keep the receiver, you could always connect your Onkyo HD-DVD player straight to the projector... or if you have more than one source, which it sounds like you may have a cable box, you could then purchase the Monoprice HDMI switcher for $50 or so.
The least expensive scaler (actually a switcher and scaler) I've seen is from
Gefen at $450. They also have a dedicated
forum.