The ability of an algorithm to accurately estimate the parameters of the geometric trans- formation which aligns two image profiles even in the presence of photometric distortions can be considered as a basic requirement in many computer vision applications. Projec- tive transformations constitute a general class which includes as special cases the affine, as well as the metric subclasses of transformations. In this paper the applicability of a recently proposed iterative algorithm, which uses the Enhanced Correlation Coefficient as a performance criterion, in the projective image registration problem is investigated. The main theoretical results concerning the proposed iterative algorithm are presented. Furthermore, the performance of the iterative algorithm in the presence of nonlinear photometric distortions is compared against the leading Lucas-Kanade algorithm and its simultaneous inverse compositional variant with the help of a series of experiments involving strong or weak geometric deformations, ideal and noisy conditions and even over-modelling of the warping process. Although under ideal conditions the proposed al- gorithm and simultaneous inverse compositional algorithm exhibit a similar performance and both outperform the Lucas-Kanade algorithm, under noisy conditions the proposed algorithm outperforms the other algorithms in convergence speed and accuracy, and exhibits robustness against photometric distortions.