I've had a Panasonic Ae900u for about 3 or 4 years now. It was an older model projector when I bought it, so I only paid about 350$ originally.
For screen, I picked up a really nice motorized tab tensioned screen from a guy clearing out old equipment from a college that was being refurbished. It's an 80" diagonal (which is just about as big as the room it's going in will allow).
We +really+ like it. It's the only TV in the household (other than computer monitors on computers) and we use it daily.
But Yotsuya is right, the room needs to be pretty dark or the screen will wash out. No prob for where we've got it, but that could be an issue.
I like it because the projector is tiny and the screen can be rolled up into the ceiling when not in use. We put a large framed pic behind it and presto, disappearing home theater!
I really like the panasonic for two reasons
1) it's HD but it's really affordable.
2) it doesn't have that "screendoor" effect that a lot of projectors seem to have (where you can actually see the pixel outlines even from normal viewing distances).
If I upgrade, I'd probably go to the ae4000, but those are still pretty $$$
Or I'll hold out till they get the paintable OLED screens perfected
