I'm reading this lecture note and I don't understand the bottom part of page 2.
1) What does it mean by "project[ing] the function $f(x)$ onto the basis functions"?
2)How did this equation go from the left hand side to the right hand side?
Wouldn't the RHS of this equation be $$\sum^{\infty}_{n=1} c_n \int^2_1x^{-1}\sin\left(\frac{m\pi \ln x}{\ln 2}\right)\sin\left(\frac{n\pi \ln x}{\ln 2}\right) $$

You have an inner product space of functions which can be represented as a linear sum of the basis functions. It looks like your basis functions are over the range $1 \le x \le 2$ and the functions are $x^{-1/2}\sin\left(\frac{m\pi \ln x}{\ln 2}\right)$. It is usually convenient to choose basis functions that are orthonormal-that the inner product of any two is $0$ and the square of any one is $1$. The inner product is usually taken with some weight function $w(x)$, so the inner product of $f_m(x)$ and $f_n(x)$ is $\int f_m(x)f_n(x)w(x)dx$. The weight function determines the basis functions if you want them to be orthonormal, that $\int f_m(x)f_n(x)w(x)=\delta_{nm}$
Any function $f(x)$ can be expanded in terms of the basis functions $f(x)=\sum c_nf_n(x)$. If the basis functions are orthonormal, you can evaluate the coefficients by $c_n=\int f(x)f_n(x)w(x)dx$. This is also called projecting them onto the basis functions by analogy with projecting a vector in space onto the $x,y,z$ axes.