Thanks Rolf,
We are in agreement -- that is how I keep my projects now.
Currently, though, I only refer to my projects list once a week, when I do my weekly review. At that time, I currently transfer one or more action items per project to my 'todo' list, which GTD calls a 'next action' list.
I work off the 'todo' list all week, doing and adding tasks as they occur to me.
Question is, when I transfer multiple action items from my project list to my todo list, there are often dependencies -- one action cannot be done until a previous one has been done. Now, you have the situation where you look over your 'next action' list saying 'nope, can't do that one yet ', 'nope, have to do something else first', etc, which I am sure is not how a 'next action' list is intended to be used at all. GTD says to avoid a prioritized list, so my conclusion is that there can only be one action item per project in my todo list at one time. I think my conclusion is wrong, but I am not sure how the situation is handled.