I chose to go forward projector, and here is why:
1) The DLP Sanyo Z2 is an awesome bargain at $1300. It projects a picture that is better than anything I have seen at Good Guys. It handles HD with stunning realism. There is no screen door effect.
2) The Liteon DVD player ($135) is another stunning bargain. The colors are natural, and never overplayed. contrast is great.
3) I can have any size screen I want, I have settled for an 80" diagonal Da-lite Theater Lite ($240). The picture looks the same from every seating angle, and is it big in my 17' by 21' room.
4) Sound is provided by my evolved stereo system. Apogee Scintillas float the music from sub level to beyond. H2O Signatures power the 1 ohm speakers like no other can.
5) when I want to listen to music, I just collapse the screen. There is no unsightly giant box.
Side note: The Sanyo sits underneath the coffee table, on a shelf. It is 9' away from the screen.