First an introduction to basic projector knowledge and my opinions
The two main types of technology are LCD based and DLP based projectors. They both have their advantages and disadvantages. Historically LCD projectors have been less expensive than DLP, but that has began to change in the last three months.
DLP generally gives off a better picture. LCDs cannot make a true black color on the screen. LCDs also tend to show the LCD grid pattern on the projected picture. Some LCDs also suffer from a motion blur effect. Basically in your price range, I would not consider ANY LCD other than a Pannasonic model. The Pannasonic 900 and new X1000 have done an amazing job overcoming these weaknesses and are at near DLP quality. The Panny 900 is the world's best selling projector, it is a fantastic projector with universal praise in every review I've read, that has been recently replaced by the x1000.
LCD is much more flexible and newbie friendly. DLP technology at your price range makes a few cost cutting decisions that have to be considered.
DLP tends to run a little warmer and louder than LCDs. Stick with the DLPs that I mention below and you will be fine.
Some people are prone to seeing DLP rainbows. They will see flashes of red,blue,green while looking at the picture. For some people its invisible, for others annoying, and for a few its painful. There is no way to know if you will see rainbows or not. The only solution is to buy a projector with a faster DLP wheel. The projectors below are all 4x speed wheels - very good but not great. I can still see rainbows if I blink and move my eyes - its distracting sometimes but not a big deal.
Finally DLPs have a fixed offset. The projected beam leaves the unit at an angle, and sometimes an extreme angle. WIth a shallower angle (Infocus IN76), you have more flexibility in mounting it on an end table or a bookself behind the sofa. With a steeper angle (Mitsu, Optoma) you have to put it on a low coffee table or on a ceiling mount. The steeper angle projectors in a room with low ceilings will limit the size of your potential screen image. You can use digital keystoning to help fix this, but at higher settings it will begin to distort the image.
LCDs do not have these problems because they have a little knob that you can adjust where the image goes regardless of where the unit is placed. They also offer superior zooming (2x) so you can make a much larger picture in a small room than you would be able to with a DLP projector and its limited Zoom (1.3)
Recently Discontinued 720p DLP deals
Mitsubishi HD1000 - Former budget king at $1500, missing auto-iris of HD3000 but almost as good as HD3000U
Mitsubishi HD3000 - Recent price drop to $1500, on par with the $2k Infocus IN76 and $2k Optoma HD72. Steep offset. I bought this one
Recently Discontinued 720p LCD deals
Panasonic ae900 - ~$1500 after rebates, worlds best selling projector - but I would recommend not getting this, its replacement is twice as bright (according to specs).
Current 720p DLP
Infocus IN76 - $2k, shallowest offset of the DLPs I've talked about. Most accurate colors out of the box. Upgradable firmware over internet
Optoma HD72 - $2k, steep offset, 10% brighter than competitors, a little louder too.
Recently Introduced 720p DLP
Optoma HD70 - $999 The new budget King - Breakthrough pricing, slightly striped down version of the HD70 - Recommended
Mitsubishi HD1100 - This year's version of the HD1000
Mitsubishi HD3100 - This year's version of the HD3000 - adds next generation DLP chip
OPtoma HD6800 - Costco version of the highly rated Optoma HD72 + costco return policy if something is wrong with it
Recently introduced 720p LCD
Pannasonic Ax1000 - This year's version of the 900 - twice as bright - Recommended
Have fun
Everything you ever wanted to know about projectors
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