If your budget allows, there are screens which are fixed frame which have magnetic 'masks' for them. So, you build a screen section like what you see above, and then you put in a 16:9 screen. When you have 2.35 content, you just snap the masking panels in place to frame down your 16:9 screen so it appears as a 2.35 screen. You don't change the width, and you maximize your width for the space. But, when you have 16:9 content (HDTV, 1.85 movies) you pull off the masks and maintain the same width. The inclusion of a masking system adds to the pop of your setup, and eliminates the 'visible' black bars. Understand, there are ALWAYS black bars because that is part of what the 16:9 projector actually projects, so having dark velour masking in place makes those black bars just disappear completely.
I'm not sure who all makes magnetic masking systems, but I know that Seymour AV does...
http://www.seymourav.com/masking.asp
THE SONY:
The Sony HW40ES is, in my opinion, and the opinion of others, the best projector on the market currently available under $3,000. It is often on sale for about $2,000, and can be had online, with a Square Trade Warranty for less than that. (about $1,800).
It's great for gaming, has good lens shift, zoom range, is typically sharp, is a brighter projector, and it is nearly dead silent. It has excellent response time if you game on it. 3D is in there and it is acceptable, but not as good as other projectors. Contrast and color are outstanding. Contrast is achieved without using a dynamic iris, which reduces a moving part from the projector and leaves very good contrast through the native capabilities of the projector.
I recommend the HW40ES, because if I were to buy a projector today, under $3,000, then that is the model that I would get.