Projector

How about saving some money on the screen by using a white bed sheet and glue the sheet to the wall. Next, go to home depot and buy some cheap wood to make the frame around the white sheet. Last, paint the wood frame to black.

Estimating cost: $30.00

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Get a projector. Bigger is better if you have the space for it. If you are able to darken the room sufficiently, the projector will best a television every time. Sure, the television with its smaller screen may be sharper, but the huge image of the projection screen more than compensates. A 40 inch flat screen monitor is probably sharper than your local cineplex.....but the cineplex with its huge screen wins every time because of its sheer size. Bigger is better and you'll never go small again. Remember, the whole idea of home theater is to emulate a comercial theater if you have the room to do it...
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Mitch,

You may have mislead OP with your bigger is better comment. It's not just a space consideration. It's the ability of a projector to throw an adequate picture on a large screen, an ability unlikely on a 150" screen for any projector even thousands of dollars above OP's price range. OP needs to adjust his expectations, and "bigger is better" is not part of that adjustment.

db

07-19-09: Ericjcabrera
i am currently using a panasonic pt-ax200u with 92 inch panoview grew wolf ...
i don't have any 1080p sources, but even at 1080i from my dvd, it is very impressive with very good daytime output.

Although your projector accepts 1080i input, it displays in its native mode, 1280x720. It downconverts 1080i to 720p.

My LCD rear projection 55" TV from 2006 is the same way and I didn't discover that fact until I'd owned it a couple years. Curiously, when I configure the Blu-ray for 1080i output, it does look a *little* sharper than when fed 720p, but not double the pixels' worth.