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Having no experience with the Xenarc screen, this may just be a shot in the dark...
I've had similar problems with projectors over the screen set to "auto-source", in my experience there are a few things that you can do to "fix" this.
Easiest: Turn auto-source "off". If you then leave it set to the desired input (DVI), it should be fine.
On some newer projectors (and possibly your Xenarc), there is a setting called "Source Threshold" (or something comparable). You can lower/raise this to help with "detection". On a projector, sometimes bright "flashes" (eg explosion during a movie) will cause the projector to switch sources. To compensate, you raise the threshold. Conversely, if the threshold is too high, it won't properly switch.
I don't know if this helps you at all, but figured I would share just in case.
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