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I agree with Fife12. HDTV is fantastic. DVD is great. Regular TV, even digital is disappointing unless you shrink the image. A projector is not something you turn on for 10 minutes to see the sports scores. It is also a hassle, if all you want to do is program your receiver or dvd-audio player with the OSD. The last Panasonic LCD players had QC issues according to some people. Go to www.projectorcentral.com/, if you have not already.
Thanks for all of your comments so far. My plan is to find a compareable unit around here that I can at least demo to get a good feel for a projector setup.
MCA,My thought is this.Get a decent $1300 PJ (not top of the line) like the Sanyo Z4 or Panny AE900 plus a $500 80-90" screen. Even easier placement is a pullup screen.Then get a cheap 42" Sony A10 or equivalent. I am sure you can get both of these setups for less than $4k US if that is within your budget.