You receive an email. While you are reading the email, you realize that you should create a new Project. You 'check' the contact(s), go the Action pulldown, click on 'New Project'. DMI will pop you into DayLite with a new Project created and linked to that contact. Fill in the details then go back to Mail. Using that same Action pulldown, select 'Refresh'. The newly created Project will show up in the DMI drawer.

Now with both the contact and the project 'checked', create a linked task using the same Action pulldown. That task will be linked to the contact and the project. It will show up in your task list. If you have a PDA, that task will show up there the next time you sync. If you've set a reminder, the reminder will alert you at the appropriate time.