Don't worry, Justhanging, I've spent plenty of time confused myself! I'm sure you'll understand it very soon. You know that
[tex]\textbf{u} \cdot (\textbf{v} \times \textbf{w}) = 5[/tex]
and that
[tex]\text{Proj}_\textbf{u}(\textbf{v} \times \textbf{w}) = \frac{\textbf{u} \cdot (\textbf{v} \times \textbf{w})}{\textbf{u}\cdot \textbf{u}} \; \textbf{u}.[/tex]
So
[tex]\text{Proj}_\textbf{u}(\textbf{v} \times \textbf{w}) \cdot \textbf{u} = \frac{\textbf{u} \cdot (\textbf{v} \times \textbf{w})}{\textbf{u}\cdot \textbf{u}} \; \textbf{u} \cdot \textbf{u}[/tex]
[tex]= \textbf{u} \cdot (\textbf{v} \times \textbf{w}) = 5.[/tex]
The number I canceled there was [itex]\textbf{u} \cdot \textbf{u}[/itex]. This is allowed, so long as [itex]\textbf{u}[/itex] is not the zero vector, because whatever it's length, when we divide that squared length by itself, the result will be 1.
[tex]\frac{\textbf{u} \cdot \textbf{u}}{\textbf{u} \cdot \textbf{u}} = \frac{\left \| \textbf{u} \right \|^2}{\left \| \textbf{u} \right \|^2}=1.[/tex]
Is that any clearer?