Well my dad wanted to do a little home theater project, but with a projector. We wanted to spend less than $1500 for now, and upgrade the sound later. We went with a Viewsonic PJ501 projector, made our own screen, RCA home theater in a box (sucks but will do for a few months), RCA progressive scan DVD player, and some hard work. Even when it's 60 degrees outside it's still like 110 in the attic. 
Here are a few pics of the building process, we aren't quite done yet. We still need to run the component cables through the attic and a power to the projector. We are just using an extension cord now.
projector
frame for screen compared to wall unit
finished screen
screws on top of wall unit to hold screen
hooks on the screen frame
We wanted something that was removable to watch the news and such on the regular TV, and be able to easily pop it out for a movie. I know the projected image isn't aligned onto the screen but we still have to move the wall unit back flush with the wall. I will update when we finish running the wire and get everything back together. Sorry for the crappy quality on the pics. We are running S-Video to the DirecTV reciever and Component to the DVD player. The screen size is 8 ft by 6 ft, roughly 120 inches diagonal. :Q
Total Cost < $1150
UPDATE
The speakers are still misplaced. We just move them for now until we watch a movie. We aren't going to run speaker wire through the attic until we upgrade to a better audio set-up. All the wiring for the picture has been finished though...
Wall unit in regular TV watching mode, check out the old school NES
Screen is up, watching Nemo
It only takes 5 seconds to place the screen on it's hinges. So far everything has turned out great! Feedback wanted.
Here are a few pics of the building process, we aren't quite done yet. We still need to run the component cables through the attic and a power to the projector. We are just using an extension cord now.
projector
frame for screen compared to wall unit
finished screen
screws on top of wall unit to hold screen
hooks on the screen frame
We wanted something that was removable to watch the news and such on the regular TV, and be able to easily pop it out for a movie. I know the projected image isn't aligned onto the screen but we still have to move the wall unit back flush with the wall. I will update when we finish running the wire and get everything back together. Sorry for the crappy quality on the pics. We are running S-Video to the DirecTV reciever and Component to the DVD player. The screen size is 8 ft by 6 ft, roughly 120 inches diagonal. :Q
Total Cost < $1150
UPDATE
The speakers are still misplaced. We just move them for now until we watch a movie. We aren't going to run speaker wire through the attic until we upgrade to a better audio set-up. All the wiring for the picture has been finished though...
Wall unit in regular TV watching mode, check out the old school NES
Screen is up, watching Nemo
It only takes 5 seconds to place the screen on it's hinges. So far everything has turned out great! Feedback wanted.