Nik:

IMHO, you do NOT want a single-chip DLP projector. The color will be washed 
out, and, worse, you'll get annoying momentary moire patterns at points where 
there are sharp changes in luminance (due to the rotating color wheel). For 
your budget, you'll probably want to go with a 3-chip LCD model. I made an 
inquiry to the list not too long ago about projectors in this price range, and 
received several recommendations for Epson (and none for competing models). 
Investigating online, I discovered that Epson has two separate product lines: 
one defined as 'home cinema' the other as 'presentation.' The later were 
somewhat less expensive, and, on paper anyway, had similar specs and technology 
to the pricier 'home cinema' models. So I bought one of these:

http://www.visualapex.com/Epson/Projector-Specifications.asp?For-The=VS335W

Especially for the price, I'm quite content with it so far. Color is good. You 
don't get very deep blacks, but that's par for the course with affordable video 
projection AFAIK. The 'presentation' models are 1280x768 native, so when you 
screen 720P HD there are thin little 24 pixel letterbox bars on the top and 
bottom. The 'home' models are 1280x720, so an HD image fills the frame to the 
edges. You're not going to make 1080P on your budget, but I wouldn't worry 
about it. The 720P looks good enough.

VisualApex had the cheapest price I could find, but they apparently don't keep 
these things in stock, instead taking your payment and having Epson ship 
directly. I received the projector exactly a week after I ordered it. Email 
communication from the vendor was very good, and they even sent out a nice 
follow-up email to see if everything was AOK with the transaction.

One thing that may or may not be an issue for your installation: all of these 
projectors have pretty wide lenses and thus a relatively short throw...

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