Drakkith said:
So the light from the bottom of the slide ends up being focused at the bottom of the retina and the light from the top of the slide is focused at the top of the retina. The slide is inserted upside down (according to sophiecentaur) so the image appears "normal" when viewed.
I really have a problem with introducing the Eye Optics into this explanation. The eye 'sees' everything in the same way and an alternative imaging system (a crude system of tubes, pointing in different directions, for instance - like a fly) would never involve an inverted image. Never mind the relative acuity of the two systems; we assume they would both be perfect and the same thing applies 'outside' the eye.
pixel said:
there are two inversions going on here
Here we go again. Both modes of viewing have the same inversion in the eye. There is absolutely no significance in this to the brain. It (evolution) has learned that stuff in the top right of the scene turns up at the bottom left of the retina. It never sees it any other way.* Forget about it; it just adds complexity. It just involves 'double negatives', which are best avoided.
The well known diagram of a projector optics is correct, of course but it's made far too complicated because it includes the mechanism which maximises the illumination from the lamp. We basically have a single convex lens to do the imaging. The only relevant difference will be the use of a 'telephoto' arrangement to achieve a shorter projector lens for the wanted Focal Length. Refractor telescopes do not use this method because there is a price to pay in quality / money.
Read the OP's description of his system. In particular, he says
guyburns said:
To focus the image I have to move the lens all the way in.
This answers the earlier question about my 'reasoning' applied to the problem. A projector is normally focussed not far from 'infinity' (around 20mm compared with '12 feet') and the film would normally be not far from the focal plane of the lens. He screws the lens in a bit - to less than the focal distance from the film and he then has a Magnifying Glass, with a virtual upright image.
Drakkith said:
The slide is inserted upside down (according to sophiecentaur)
Did you never look at the back of a plate camera, with the focussing screen in place? You poor deprived boy.

My dad had a half frame Voighlander and I played for hours. (Was never allowed to use an actual plate exposure, though.) The image is inverted (same as in your eye - AAAArghhh!) so, to produce the same scene when projecting, you have to invert (fully) the slide / film / plate.
* Pressing the right side of your eyeball with your fingertip. right near the orbit, will produce a black spot on the left of your vision. Newton did the same with needles - apparently. (EEjit)