You want to make a point to avoid business class projectors, most notably they won't have 16:9 aspect ratio, very good contrast, a fast color wheel speed (DLP).
What they will have? Poor processing, louder fans, not the right inputs, no adjustability with setup, etc.
At the $1K price point there are a few projectors worth looking at for home theater if you put quality first.
1. InFocus SP4805 - Great projector for the cash, DLP, with Faroudja, this one is an excellent choice.
2. Optoma H31 or H27 - Ditto - great stuff, but the InFocus comes out of the box pretty much ready to go, the H31 & H27 require some tweaking.
3. The InFocus SP5000 (listed in prior post) seems to be a great deal right now on a projector that wasn't very popular. Worth a look at.
4. The Sanyo Z3 or Panasonic AE700. Both are great projectors for the cash and represent some of the best technology out last year, but run closer to $1,300 -> $1,500.00 If I could figure out how to get a Z3 or AE700 I would do that first and put these at the TOP of the list.
5. Closer to $2K is the AE900 or Z4 (panny/sanyo) which are this years models and may be out of budget.
Check
www.projectorcentral.com - do a few hours reading on the projectors listed and some others. Have no doubts - business class projectors, while they may do the job, are nowhere near the quality for video presentation like a decent home theater projector.