I'm not sure about that bar either, but it seems to me that it deal with your hit combo. It seems that to keep your combo going, that bar has to remain full. If it empties, I find my combo usually stops, so that is my best guess.
As for projectiles, there are varying damage rates for projectiles. I think this may have to do with color as was mentioned, or it may be that the smaller ones are just less powerful than larger ones. Either way, you are correct... some projectiles will not kill you with one hit, while others will.