I use an Epson EMP, bought from http://www.purplecat.co.uk/
a couple of years ago. You wouldn;t have one as the main TV in your living room, but specifically for home cinema and gaming its great. Feels really special turning the lights down and watching a movie.
It works fine in anything but bright sunshine, generally dimmed lighting is best to get sharp resolution. No problems with it going out of focus and its still on the same bulb after very frequent use (must be over 2,000 hours by now).
I set ours up in the kid's playroom. It has the advantage that everything is attached to the ceiling so its out of harm's way and quite inobtrusive.
Did the whole setup, projector, cables, screen (free with projector), DVD home cinema system and Xbox for £1,500. Try and get a 60" screen in any other format for that price!
If I did it again I'd spend more on cabling as a 10m scart cable noticeably loses quality compared to a 1m.
Purple cat were very helpful over the phone sorted out delivery and supplied a replacement screen after the first was damaged in transit with no arguments.