Maybe this is what you're looking for? http://wordpress.org/extend/plugins/custom-post-type-permalinks/
If you are using portfolio page as explained here: http://www.briangardner.com/portfolio-page/
Then goto functions.php file and edit this line:
'rewrite' => array( 'slug' => 'portfolio' ), in the code displayed on the above page.
Change portfolio to projects as per your requirement.
I used the solution found in this thread here: http://www.studiopress.com/forums/topic/executive-theme-how-to-maintain-current-marker-on-portfolio-items/
Will check out the custom post types plugin and your functions.php fix for next time. Thank you both!
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