Here is a tutorial I copied from http://www.dvdhomevideoeditor.com home page
I did it and it worked. I even contacted them twice and they replied.
goes as follows:
HAVE A WORKING PROJECTOR, AND A HIGH QUALITY DV CAMERA, AND 2 COMPLETE DAYS?
Step by Step. Read this article carefully. Our demo on the home page was produced using this method, and it is very affordable, and quick.
Basically - Film it using a camera greater than $1,000 in price and a small piece of heavy matt photo paper, not glossy. Best is smooth cloth, but it must be very fine fiber and very smooth. Image max size 10 inches wide. Best is 5-6 inches. Do not film it using a projector screen.
Build a black cardboard box, project into it with the inside sides painted FLAT black. Must be 1 foot wide, 1 foot or so high and about 2 1/2 feet long. Do not skip the flat black paint - I learned this via trial and error. It reduces light distortion in the camera. Paint the edges of your photo paper FLAT BLACK leaving a white square 6X8 inches. This reduces white glare. Attach the paper screen at the end of your box. Connect to the bottom of the photo paper screen a long piece of cardboard , like a handle so you can gently pull the bottom towards you a bit to angle it, or push it back slightly. Aim your project STRAIGHT on - if it is tilted even a bit, the edges will be slightly out of focus. Aim the Digital camera as close to the projector line of sight as possible. Do not use ANALOGUE camera. A DV camera will allow you to set the shutter speed. You need to use 60FPS for film that plays at 20FPS. (You can film 18FPS film at 20FPS to get a good DV capture and slow it down in your DV Video editor. Filming at 18FPS will produce a lousy capture) Set up your capture program and view the camera on screen. Now set your camera on AUTO FOCUS. Attach a piece of printed paper to a long stick. Shine some light into your long box 1 ft wide, 1 foot high and 2 1/2 feet long with the photo paper taped onto the other end facing the camera and projector. Push the stick up against the screen with the camera on, let it focus. Now turn off the focus. Put it on MANUAL while it is still focusing on it. Take out the piece of paper with print on it you used to focus the camera. Cycle power on the camera leaving it on MANUAL focus. Now run your film thru. At first, slightly move the bottom of the screen forward or backward until the little white spot from the bulb is off the preview on your monitor. Constantly adj the speed of the projector to minimize the white flutter. OR - take off the back cover of the projector and spray slick 50 air grease onto the gears. That will help it run smooth. LEAVE it on MANUAL FOCUS. When done and in PC, run a professional AUTO LEVEL filter through it immediately. This will get rid of some of the white flutter. Do not use COLOR CONTROL or any other filters at the same time. The detail is lacking to run multiple filters even if you use a $3,000 camera. Run a COLOR CONTROL filter thru your clip after you run the auto level first. That is as good as you will get using telecine and a cheap regular projector.
Practice filming a small 50 foot reel a few hours. The only way to minimize the white phasing flutter is to adj the speed of the projector manually during capture. GOOD LUCK!