Matlab code example for piecewise linear approximation and Euler Equation Iteration Where I can find a good Matlab sample code that performs Euler equation iteration with piece-wise linear approximation of policy functions? 

The Projection method I have in mind is something like described in the Finite Elements method in Aruoba, Fernandez-Villaverde, Rubio-Ramirez (JEDC 2006) or more generically Chapter 4 in Heer and Maussner "Dynamic General equilibrium models" (the examples in the cited references are either Fortran or Gauss).
Two suggestions: 

First, try some of the sample code at this website. It builds simple Euler equation iteration methods from scratch in Matlab. 

Second, try the sample code here. You will need to read the associated notes, also. The code makes use of the CompEcon toolbox in Matlab, by Miranda and Fackler (associated with their book:  Applied Computational Economics and Finance).