hello,
i'm not a theater designer but i do work for a theater company and have seen a lot of gorgeous theaters and learned a little something along the way.
regardless of what companies may state, the very nature of a projector is to shine light on a screen...this inherently compromises blacks due to ambient light.
the largest screen company in the world, stewart filmscreen, offers grey screens on their flagship product. smx, the company we use here, offers two shades of grey in their flagship products. even with 50+k projectors the engineer still uses a light grey screen...
as for your question about screen size, i believe mr. geddes book is dated. upscaling dvd players do a great job, but of course they're not near the resolution of 1080p. i think the size of the screen is better determined by the brightness of your projector and your viewing distance.
if you need more detail you should call the office and ask to speak to a tech. i'm sure they'll be happy to answer your questions in better detail...it's a pretty laid back place.
also, if i may ask, why no blu-ray player or pc? if not for a personal library, it's still a pretty amazing experience to rent a blu-ray movie for the eye candy.
good luck with your theater,
jp