Hi all,
I put together a DIY project, based on a cheap 14" LCD monitor and a fairly decent Overhead Projector (OHP).
You can see some pics of it here:
http://spikyfish.com/1.jpg
http://spikyfish.com/2.jpg
http://spikyfish.com/3.jpg
I would note the following:
If you are going to do this, then get a decent LCD. I bought the cheapest I could find (as I didn't know if it would work) and the contast ratio is poor - anything from dark grey to black is, well, dark grey.
A very powerful OHP is probably not required. The one I got is over 4000 lumens, and I permanently run it in economy mode.
A decent OHP lens is required. A triple element (triplet) lens will give you a very sharp image (close to the projection screen I can see individual pixels - the monitor is 1024x768).
In my third image (which is actually my living room in the middle of being decorated) shows the size of the cabinet I made to house the LCD panel, OHP, and a PC to drive the display.
The dark marks on the top of the box are two 120mm PC fans, which blow air down a duct, onto the surface of the LCD panel. You really do need this, as the panel gets very warm. Also, DO NOT raise the panel off the surface of the OHP glass - the light is concentrated to the lens as you go higher, and the heat is immense.
I call the cabinet 'the fridge'. It's big, white, spits out tons of heat (the OHP alone takes 500w) and is noisy (about 50dB) due to the OHP and PC cooling fans.
Also, the restricted throw ratio of the OHP lens means that to get my 2m (approx 80") wide image, I can't put the projector any further away from the screen. In order words, you've got a large noisy box, pretty much exactly where you want to sit.
My projector has been running for about a year, and it's been sufficiently used to make me certain that I could justify buying a real one.
It cost less than 300GBP to make, and an InFocus 4805 (which I'm considering) is over twice that here in the UK.
Apart from the fact that my DIY unit has 'HD' resolution, and the 4805 doesn't, I'm certain the 4805 will give a better picture, be quieter, much smaller, and can be placed further back from the viewing position (so less noise due to distance).
DIY projectors - horses for courses. If you can afford a proper projector, then go for it. The DIY option is fun, but be prepared to do a fair bit of tweaking. If you have an old 14 or 15" LCD monitor, and can score an OHP for a good price, then give it a go.