There were not many resources on the web on this...
So, it looks like I'm S#it out of luck with this projector (x1261p) for viewing 3d bluray movies on my pc!
i should have spent a little more on the projector to buy one with hdmi port. :-0
In addition to the connection problems is the problem of having a display that can do 3d blu ray. There aren't many of them, and I don't know of a projector that can do this, but you could contact nVidia to see what'sn available. Here's a link to the 3d vision monitor page:
My 3D Glasses are just regular DLP LINK 3D glasses bought for cheap ($49) on ebay, not NVIDIA 3D VISION KIT + GLASSES which are a lot more expensive.
Making it work in NVIDIA 3D Vision mode was not too difficult. I just downloaded and ran the 3D Vision IR Emitter emulator program (googling) and it created a virtual device connected to my USB port. It tricks the system think that I have 3d vision emitter device, so 3d vision setup wizard will let me bypass the detection of this device. And yes, DLP LINK glasses do work without this 3d vision emitter device because it syncs directly to the screen, not to the signal from the ir emitter.
Using 3d vision mode, stereoscopic images are a lot smoother than software solutions like IZ3D and stereoscopic player's software pageflipping method.