An image projection system and method is presented for optically projecting an image onto a display surface with visually correct geometry and optimum image quality. The projection system includes an image processing unit for receiving the input image data and generating distortion-compensated image data to compensate for ensuing spatial distortions in the projection system, a projection light engine for receiving the distortion-compensated image data and projecting a distortion-compensated optical image that corresponds to the distortion-compensated image data; and, an optical reflection assembly comprising at least one curved mirror positioned in the optical path of the distortion-compensated optical image emerging from the projection light engine for producing a displayed optical image with reduced distortion on the display surface. The image processing unit distortion-compensates the input image data such that the optical and spatial distortions associated with the projection light engine and optical reflection assembly are substantially reduced in the displayed optical image.