I have spent dozens of hour trying to find is it possible to change projection with mapserver with no luck so far. My input format is EPSG 3067 and I need to convert it to EPSG 900913 for Google Map use.
In the MAP object add
PROJECTION "init=epsg:900913" END
this sets the output projection of the map. Then in t LAYER object add
PROJECTION "init=epsg:3067" END
this set the projection that the incoming data for the layer is already in.
You will also need to add the following line to your /usr/share/proj/epsg or the equivalent path if you are on Windows:
<900913> +proj=merc +a=6378137 +b=6378137 +lat_ts=0.0 +lon_0=0.0 +x_0=0.0 +y_0=0 +k=1.0 +units=m +over +nadgrids=@null +no_defs <>