Defiantly forget the cheaper projectors will only lead to disappointment
I'm running a Optoma 750xl gaming projector only 720p so not part of the latest generation on projectors running full 1080p but you can still tell the quality of it in the image. Think I paid £250 second hand off a friend with hardly any bulb usage..
screens defiantly worth the investment unless your going to go to lengths of welsh182 above on a wall, as a crap surface really ruins the picture. lucky for me my screen can be down all the time so to get round the issue of the curling edges I've double side taped it to the wall!
My screen size is around 83" from corner to corner with the projector being just a metre away!
anyway heres my room which tbh any excuse to get pictures up as its just a great man cave! lol
Some pics don't show that its now running Onkoyo 5.1 which has completely changed the whole room and experience its epic!! so if you do want the big screen etc then defiantly budget for a 5.1 system to go along side it.
and footie but the pic is terrible