Hi Bob,
I'm currently doing a PhD with only a BSc. I actually asked my potential supervisors at the time "why would they pick a BSc 2.1 student over a student with a 1st in their masters?", they both said that they would pick a student based on their potential to do a good project/PhD...so I think the honors project you did in BSc. is very important! Especially if you get a good result in a project with some relation to your PhD topic!