Yeah, I am all about projectors as well, but you do have light issues that you must deal with, and if this is a primary viewer, you will have to deal with replacement bulbs ($300.00ish) about once ever 1-2 years depending on your usage.
But, they last a long time, and you get a really big image for the money.
Another down side is you need some sort of audio hookup, like a Onkyo HTS-770 surround system to deliver audio and handle video switching which may not be within your budget (about $350.00 more).
What would I recommend? Not sure - I would probably save a bit more and get an inexpensive 42" EDTV plasma. They should last you for several years, have built in speakers, and some have built in CableCard which you may find useful/cool. No bulbs, hang it on the wall, enjoy the reliability.