I cannot believe I did not return this item when I had the chance. Buyer Beware. If you have this product and it goes to static at anytime during your return period, return it. It will not get better. It went to static the first couple days I had it, to resolve the issue you change the output, then change it back by pushing the Source button. I figured this was just a glitch. 2 months later it is doing it much more often. I cannot believe I paid a premium for a device that works no better than the less expensive devices. I don't think having a product like this should have a return policy limited to less than 3 months. I bought this in May on Amazon, shipped from J-Tech and it sucks. I made sure to post my feeling about this on other sites so others know as well. I don't think I need to include a photo, just google static and you will see images. But I will post a picture of my hookup.
Edit Sat Aug 8th 2015
I was notified by Customer Service that the device has a one year warranty. And they offered a replacement device. I requested a return label and replacement device. I am updating this to 3 stars until I get and test the replacement. Fingers crossed that I have a defective device.
After a week of testing the new unit I have no more issues to report. It appears that my initial device was malfunctioning, and that the replacement works perfect. I don't notice any color or quality degradation from connecting directly to the projectors hdmi. I have updated my review to five stars, which is what the working product deserves. The company was quick to remedy my issues and responded to all my emails. I would definitely recommend to a friend. I feel that I really was unlucky getting a non working one, because the build quality is actually really solid.