This is a DIY projector design taken to production level with commodity parts - it is almost as different from other LCD projectors on the market as they are from DLP projectors. It is quite a bit closer to having a normal LCD screen, in use.
The company grew from a supplier of plans to build projectors, and they are extremely well regarded - they've done things like voluntarily recall entire production runs because focus was slightly off, at great cost. I've been a member of their (now free) forums for a while now.
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Contrast on production projectors has been rising very fast recently.
However, this is mainly due to improvements in the dynamic iris and therefore dynamic contrast (a black scene after a white scene), not ANSI contrast (a black shape next to a white shape), which has stayed about the same. This LCD has no dynamic iris, and will give you the same black level on a normal scene with shadows as it will give you on an all-black frame. IMO, dynamic iris's are overrated.
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This is a DVD and standard definition TV projector - a pretty good one. The price is a big standout (more than competitive with low-tier refurbs), but the bulb cost is simply, almost zero compared to competitors. The HUGE hidden price in projectors is that you normally have to pay $300 every 2000 hours or less of watching. Getting a new bulb every six months is not uncommon. This is where projector companies make their money, in proprietory bulbs.
This projector will make a blu-ray or HDDVD look DVD-quality. It is not a full HD display. If you're buying it for HD, you're an idiot.
Most of us, however, still have huge DVD collections, and still watch cable TV. And we wouldn't mind a wall-sized display.
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What I would do:
If you can't afford to spend $5k on a 1080p projector, simply put off blu-ray for a year or three. The projector market is one of the fastest moving tech markets in existence right now - a new product takes 'top dog' status for a given price range every 2-3 months. Buy this now, use it for all your standard definition needs on a 100 inch screen, and expect it to last until 1080p projectors get into your price range. While 720p currently has a majority of sports-TV channels, I wouldn't plan on dropping the equivalent of a used car on anything less than 1080p considering movies, non-sports TV, and obsolesence. The market is clearly trending towards 1080p standardization eventually.
In 2-3 years blu-ray vs HDDVD will be settled, HD will be in the process of taking a majority-share of cable/satellite networks, cablecard 2.0 will be here, and 1080p projectors will be in the sub-$2k price bracket....
In the meantime, buying this would let you enjoy a 100" screen for a pittance, and if you absolutely need HD quality now, pick up a much smaller wall-mount LCD for under $1000 to be cost effective.