Are you doing a lot of movie watching or is this strictly for computers?
I ask because if it's for movies, go 16:9 no contest. For computer usage then it gets tricky... 16:9 is supported in a lot of newer games but 4:3 will get you better compatability overall. 16:9 projectors have better image quality generally as 4:3 models are mostly geared towards business environments where brightness is more important than image quality.
I'd say 16:9 or 4:3 is your biggest decision after you decide a projector is right for you.
Do you have a room that's dark enough for projector use? That's the main problem with projectors if you ask me. If you have decent shades or will be watching mostly during evening or nighttime hours then it's a mute issue, but don't expect to have a projector look very good if you have a good amount of light in the room. The darker the better.
Another thing to consider is throw distance. There are some nifty screen size calculators
projector central as well as a ton of other useful information. They also have top pics for popularity for projectors in different priceranges for different purposes. For throw distance there are short throw and long throw... depending on your room size one may work a lot better for you.
For resolution, I myself went with an ED Infocus 4805 (pics in my sig if you want to take a look). Resolution isn't everything. Look at specific models and get opinions on their image quality. You can have two projectors with different resolutions and the one with lower resolution could look much better than the higher one.
Another big decision to think about is LCD vs. DLP. There's a nice article at projector central talking about the two technologies.
Bulb life is a concern, but I've decided after reading a lot that it's "blown"

out of proportion. For mine for example, if I get the MTBF hours out of my bulb, I'm only spending 10 cents an hour to watch my projector. 25 cents for a theater-like experience isn't bad if you ask me. If you're not nuts, a bulb should last you a couple years. I expect that by the time I run through a couple bulbs I'm going to want a new projector anyway so I didn't look into whether anything wears out besides the bulbs. I don't think anything else does really. The lense can get dirty and that could require some maintenance.
Screens are a big thing to think about too. I'm just using a white wall at the moment as I didn't bring my screen to school yet. I haven't seen it on a screen yet, but it's going to give me better uniformity and color accuracy when I do.
I got my 4805 + screen for $999 at costco. If you wait for a nice deal, you can get a very nice projector for right around $1000 now.
Some good companies for projectors under $2000 are Infocus, Optoma, Sanyo, Benq, and Panasonic.
Ok, after all that, I'm going to tell you to go to AVSforum... specifically the
Digital Projector area... you'll find more info than you'll know what to do with.
Go out and look at some in a specialty electronics store before you go out and buy one. There are issues like rainbows and screendoor effect that bother some people enough that they wouldn't enjoy owning a projector.
If you meet all the requirements for a projector purchase, a projector can be an incredible deal. You'll never be able to watch a movie on a regular tv again

.