“Bought this thinking I could connect laptop (with HDMI output) to receiver that connects to an older projector. The sound is great, but the video quality is awful (black & white w/ lines). Projector works with great DVD player & DirecTV, so not issue.”
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Sounds like you have perhaps plugged in the wrong colors to video video or they are not plugged in all the way or it might be a setting on your projector in last case could be that the converter is faulty
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