The Projection modifier is used primarily to manage objects for producing normal bump maps. You apply it to the low-resolution object, and then pick a high-resolution object as the source for the projected normals. When you use the Render To Texture dialog to set up projection, Render To Texture applies the Projection modifier to the low-resolution object automatically. You can also explicitly apply the Projection modifier to set up the projection before you use Render To Texture.
You can apply more than one instance of the Projection modifier to the same object, and you can instance it across multiple objects.
The Projection modifier is a topology-dependent modifier, so when you select an item in the stack that is lower than the Projection modifier, you see a warning dialog that asks if you want to proceed. (The same is true of the Automatic Flatten UVs modifier.)
You can match geometry to sub-object selections. There are two ways to do so: matching material IDs, or matching named selections of sub-object geometry.
Here is a sample workflow for using material IDs to match portions of the low-res object to different high-res objects:
To do so, the low-res object must be a surface model; that is, an editable mesh, editable poly, editable patch, or NURBS surface. Use the Surface Properties rollout to change the material ID of sub-object selections.
An easy way to do this is to apply the Material modifier.
The texture for faces of the low-res object receive texture element information only from the source object that had the corresponding material ID.
Here is a sample workflow for using sub-object selections to match portions of the low-res object to different high-res objects.
The name of the sub-object selection set is added to the list.
The Render To Texture dialog appears.
Render To Texture renders a separate texture for each of the named sub-object selections contained in the Projection modifier.