Even when I’m not streaming or recording and just have the preview in full screen there’s noticeable screen tearing. Sometime it gets really bad, but goes back to just being kinda bad.
Is this the Fullscreen Projector you're talking about, or the per-source projector?
I suppose you could try forcing on vsync for the desktop. But if you're trying to play on the projector, you'll have a pretty bad experience... there's a significant amount of capture and rendering delay, even with the screen tearing.
Best recommendation I can give is to get yourself an HDMI matrix. It will allow you to switch your main monitor to the console HDMI feed and back quickly and easily, so you can play on a low-latency direct feed. You can find less-expensive 4x2 models (4 input, 2 output... one for the cap card, one for the display) for under a hundred bucks.
I found out that I was using the fullscreen of the preview rather than the source which has fixed some of the problems. You're right though that it still is a little blurry and there's quite a lot of input delay.
If I get an hdmi matrix, will the audio coming from the console be delayed since I just getting it from "listening" to the capture card on my pc?
If not, could you please send a link to an hdmi matrix you reccommend?