A Snopes search didn’t turn up anything, so I’m turning to the Teeming Millions (or however many read the SDMB). I’m not including any Earls, I’m sure y’all can understand why.
I would almost certainly think that this product does not perform as claimed. The ad seems a bit too enthusiastic to me to be taken seriously. Comments such as *“You will never need to buy another TV again. No kidding! This is it, the secret is out! PLEASE don’t waste your money on a “Big Screen” TV until you have tried this. HDTV look out!” * suggest that they really don’t understand exactly how HDTV works.
Additionally, I could not find a single photograph of the device, or even a “projection” as rendered by said device. Does it perform so poorly that the public cannot be allowed to see it prior to purchase? Indeed, the only photo I could find was of an acrylic screen, that magnifies an image 2X.
Also, take a look at this line:*
"This offer will only be around while our product is in the production/marketing phase. Once the projection system is in stores, you will be unable to purchase this information from us. " *
In other words, quick everyone! Buy our plans and build one yourself before we get them into the stores! Yeah…Right. Because companies ALWAYS convince the public to build their own version of a product before they start providing retail revenue for the designers. Additionally, using those plans, what’s to stop you from producing and selling the device yourself? All that would be required is one demonstration of the product to almost anyone, and the result would sell itself. Everyone would want one of these amazing products.
But the biggest suspect in the ad isn’t for anything to do with the product, but rather for the so-called “free trip” your 20 dollar purchase gets you. Funny… When I was in Mexico a while back, I didn’t meet anyone telling us they got there for 20 bucks worth of projector equipment.
Lastly, the product tells you in no uncertain terms that the success relies solely on your following the instructions correctly. I’d be willing to bet that said instructions, if you ever receive them, are written in such a way that the blame for failure can easily be traced back to your inability to follow them.
I say skip it, and let the next sucker lose 20 bucks.
I seem to recall similar offers when Projection TV’s started becoming more common place. It was made up of a screen that did pretty much as **Stupendous Man ** said. Smells like a quick rip off. In fact I’ll bet youcan find a similar add in any of those tabloid papers they sell near supermarket check out counters.
We have a segment on our local news every week called “Does it Really Do That?” A few weeks ago they did something that sounded just like that projection TV.
The principle seems to be that by playing a TV down a black cardboard tube and through a couple of lenses you can project a very large and clear image on your wall.
They had the news women and two engineers buy one of those kits and try to put it together. The supplies they needed to buy were cardboard, black paint, lots of tape and an razor knife.
They spent several hours trying to build the “projection TV” When they finally got it together it didn’t work at all. After fiddling with it they were able to make it work, but the picture was upside down.
I would say don’t waste your money.
I vaguely remember Kyle over at the [H]ardOCP ( http://www.hardocp.com ) busting some scammer’s chops for selling a similar device that claimed to turn your 14" monitor into a 25". There were some positive things to say about it from zealous Quake III players. That device was really nothing more than a modified overhead projector.
Unfortunately, [H]'s search engine is fried again, so I can’t find the blurb for you.
I went and found the website with Google, and now I can’t get rid of the creepy feeling that there’s a real serious scam going on here. Somebody go and look at it and tell me what I’m missing. Should we notify the Federal Trade Commission or something? 
http://members.aol.com/swalker964/tv.htm
Obviously the point of the ad is not to sell the $19.95 TV conversion instructions. Obviously it has something to do with the “free” vacation certificates, which take up 2/3 of the web page. How in the world could he profit by giving away “free vacation certificates”? I don’t get it.
Is he asking us to believe that the various Reno and Las Vegas, etc. hotels are bankrolling this the way Wal-Mart offers loss leaders on bath towels or something?
Is it, contrary to statement, going to involve sales presentations? What?
And it’s an auction? Huh? What’s he auctioning off, the TV conversion instructions?
Is this maybe it?
Besides making money selling plans for something that probably doesn’t work, is he also trolling for e-mail addresses?
DDG - the “free” vacation certificates is an old giveaway scam. When you get the certificate, there’s usually a condition that you get your lodging (and maybe one plane ticket) for free if you purchase one(or two maybe) “Y” class tickets with a certain travel agency.
What is “Y” class? It’s the rate that you pay if you walk up to a ticket counter in an airport and purchase the ticket to get on the next flight out, refundable. In other words, the most expensive fare on the books, sometimes by a thousand or more dollars. With a little planning, you can usually get tickets and lodging for two people for the same price as one “Y” class ticket. (Pardon the ambiguity, its been fifteen years since I seen one of these - but Mom was a reservation agent so she 'splained it all to me)
HOW TO MAKE A 13" TV LOOK LIKE A 100" TV:
Put a magnifying glass over your eye.
“Look out HDTV”? Please. 320X240 resolution will always suck, no matter how big the screen is. The reason you don’t see 100" TV’s being sold retail is because the image would look like a bunch of fuzzballs bouncing around on the screen.
Well, that and the fact that nobody has room in their house for a 100" TV… if this is a scam, it’s not a very good one.
I am reminded of one of my favourite ads, from TV Guide a couple of years ago. It was this set-top TV antenna (“Rabbit Ears”, to you) with a plastic dish thingy between the two antennas. It promised “NO SATELLITE FEES because you DON’T receive satellite signals!! NO CABLE FEES because you don’t receive cable signals!! WORKS JUST LIKE ‘RABBIT EARS’”
All for the princely sum of $50 plus S&H.
In high school, a friend and I came up with a similar scheme which, if were one of these marketers, we might have even had the brass to try and sell: “Learn to speak like the deaf and dumb - buy our blank records!!”
Love all the replies! 
I have absolutely no intention of giving money any of these fools. I happend on these while searching eBay for something completely different (no, not Python). I think the nut on eBay and AOL is the same one and have already notified eBay’s staff to look into the fool’s auctions. Y’all ought to see the other nonsense he has up for auction!
I remember the coming across the site a couple months ago. The site is ludicrist.