There are several good projectors out there. True HD (1080p) models are still more than $2500, so you are looking at a 720p projector at your fund component.
The new Panasonic AT-AX200U (See link) has been described by ProjectorCentral.com as "the poor mans 1080p projector". It's a 720p model, but supposedly displays 1080p material (e.g. HD DVD or Blu-Ray) hence all right it looked almost as good as a true 1080p projector ... and it currently sells in the USA for ~ $1300.
I read a lot of projector reviews, and for the $$, this sounds suchlike it would be one worth checking out. For others look at the recommended models at projectorcentral.com (I'd give you a link, but the site isn't responding at this time ... maintenance??).