About the only reason that any projector would appear to have washed out colors is if it is a lousy projector, has a poor setup, or, most often, is in a room with to much ambient light.
For OPTIMAL results with a front projector I recommend not only a decent home theater projector, like the aforementioned Panasonic AX100U but also that you, at the very least, get a DVD calibration disc like Avia or Digital Video Essentials (available online) and then put it all together in a 100% light controlled environment.