Our old projector died a slow death by shifting to only showing green images. From what I have read, this can happen to LCD projectors if you use them too many hours at a time.
We now have a Sharp XR-10X DLP Projector, which is fully HD (1080i) compatible. It was great for watching the NCAA Final Four in HD. Even with a lot of light in the room, you can see we still get a very strong image. Cost was $750 from Costco online.
Here is a picture of our "theater room". The projected image is about 7 feet wide.
The room is not remodeled yet, and we are projecting on the wall, but it still makes a great theater at 20' wide and 38' deep. We have remodel plan for this room, but it comes after a number of other items.
I needed to mount the projector behind the beam, so I used a flat-screen TV mount, which can hold up to 80 pounds. This cost about $80. To buy the mount, plus the wall mount adaptor put a projector mount at over $120.