How much ambient light in the room? If you have blackout shades/window coverings and very low ambient light then go with a DLP or LCD projector. If there is a lot of ambient like then plasma is the better way to go. How big is the room? Anything smaller then 20x16 and your wasting your time with 7.1; do 5.1 instead and save some money. You can purchase a 92" Da-lite Da-mat fixed screen for about $350.00 delivered. Don't waste your time with wall paint, the picture is a lot better on a screen. Anyway, if your looking at 50" plasmas, I think you can afford a fixed screen.
I went through this same crises a few months ago. Could not decide between plasma and a projector. Ended up with a panasonic HD projector and I'm very happy. It doesn't do the blacks of a tube, neither does plasma, but the size of the screen is worth the trade off (IMO). I ended up spending $4300.00 for projector, screen, cables and room remodel!
Good Luck,
I went through this same crises a few months ago. Could not decide between plasma and a projector. Ended up with a panasonic HD projector and I'm very happy. It doesn't do the blacks of a tube, neither does plasma, but the size of the screen is worth the trade off (IMO). I ended up spending $4300.00 for projector, screen, cables and room remodel!
Good Luck,