I do a 50" plasma along with a 106" FP in my family room. While I'm not sure of your budget, I did go with a POS plasma (Sampo) and a Panny PT-L300U which I purchased new 3+ years ago. It works very well. The real fun is that the projector is phenomenal on movie nights. It is not a 'everyday' thing, but a piece that is used specifically for the movies and special times. The nice thing is that the good speakers get to be used all the time. So, even if it is a daytime running of The Incredibles for my 2 year old, the sound is killer... He always starts giggling during the THX intros.
106" motorized, tab tensioned screen drops from the 9' ceiling with the touch of a button. The plasma turns OFF, the projector turns ON, and things are good to go. I have component run to everything and use a distribution amplifier to split the component video between plasma and projector.
I strongly recommend it - and I think you would love it. The 65" plasma is cool, but 120" projection is almost 4 times the screen area as that plasma. That's a phenomenal image for the space and reall envelopes you in the movie experience, or the HD running of the game.