Anamorphic stretch is only if you intend to use a 2.35:1 screen, which I would generally not recommend.
The Epson 8500UB is at the top of my recommended list under $2,500.
The Panasonic is great at $2,000, especially if your screen is around 100".
If your room is a theater - dark walls, dark carpet, dark(ish) ceiling, then a 1.4 gain screen is a great choice. Carada Brilliant White 100" diagonal Criterion series.
Screen size should be about .66x your seating distance in width optimally. So, sitting at 10' works out to a nice 6.6' screen width - or about a 92" diagonal 16:9 screen.
Projectors are not NEARLY as bright as flat panel displays. But, unlike flat panels which are designed to be used in bright rooms, projectors require a dark room or dimly lit (not light on screen!). Some projectors, including the Panny, have a gaming mode to increase response time and lower processing. The image on screen potentially doesn't look as good in this mode, but it has less lag than using full image processing.
The processing itself is the same which is used in many televisions and displays already, including the one you already own. So, gaming results are similar.
If possible, find a store or another person in your area where you can demo a good front projection system. Quite often stores have poor systems, but sometimes they are well setup.
