Strange, I do see projections, here...
However, there may be an issue with the number of projectors around, and how they get sorted. There is only a limited number of "spots" you can use in SL (
4, IIRC EDIT: 6), so if there are many projectors around, you could well end up with yours not rendering at all (the others around taking the slots). Try reducing your draw distance and see if your projector renders...
Also, be careful when enabling shadows: if you enable "all shadows", then your spot light projection may get shadowed by larger objects around... Try enabling "Sun and Moon only". Also, sometimes (because, just like for spots, the objects shadows numbers are limited), switching shadows on and off may make the projected light reappear...
All the glitchy projectors and shadows stuff will be revamped anyway, when PBR will be released...
EDIT: there is indeed a difference in how the Cool VL Viewer fades out nearby lights in excess of the maximum (6), when compared with LL's current viewer code (probably an old change I missed when LL made it in their code). I resynced that code, so that next release will behave the same as LL's...