We'll go through a few things.
If they still have the projector in place, they need to properly diagnose the issue.
1. Turn the projector off - is there a distortion on the screen? If so, then the light itself is casting the distortion either directly, or by a reflection. Determine if it is a reflection by moving the projector a bit, otherwise, it is just direct light from the chandalier.
2. If there is no distortion, turn the projector on, then see if there is a distortion. Now find out what is causing it. Is the chandalier in the light path? This would not cause a shadow if the chandalier is close to the projected light. Otherwise, it is EXTREMELY unlikely (if not impossible) for the chandalier to introduce distortion - other than scan lines.
3. If they want a new projector, then why not find a new place for that projector? We've installed many projectors in churches and you can use extremely long throw, or rear projection to really help hide the projector. But, a large chandalier in the path simply does not work, and needs to be addressed.
4. HOME theater (and movie theaters) happen in the dark, board rooms, schools, and churches always project in ambient light. The best way to do this is with rear projection - which is pricey, and takes up space, but is easily the best way for a bright image.
5. If you can't do rear projection, then shoot for no less than an XGA projector with no less than 50 real world lumens per square foot of screen space. So, for a 10 foot diagonal, which is a 6'x8' screen = 48 square feet, you want a projector with 3,000 to 4,000 lumens - MINIMUM! The actual math says you need about 2,500 lumens, but as I said, we want a true 50 lumens per square foot, and since projector manufacturers tend to exagerate, and lamps dim over time, you want significantly more lumens than the estimate. The absolute minimum is 20% more than the expected minimum... So, 3,000 lumens specified. More, is just icing on the cake.
6. If you aren't able to test with a projector in place, you will need to find out why the chandalier is casting any distortions on the screen. There is no reason for this other than those I described before, so it's important to nail down exactly what the issue is.
7. Set your expectations according to the budget - don't make expectations if you have no budget. Quite often people see a $1,000,000 setup and then show up with $3,000 and wonder how close to that they can get. With a USED Yugo budget, don't expect anything more than a used Yugo. If you have a more reasonable budget for large venue installation - say $20,000 or so - then you are far more likely to have overall results which really do impress. Just set your expectations accordingly.
8. More details wouldn't hurt.