Optoma HD72 720p DLP Home Theater Projector
Fantastic picture quality, limited features, great price.
(Update May 2008) - Still using this (and on my first lamp too) so this has been a very good projector for me.  If 720p is adequate for you and you can live with the screen geometry limitations, this projector is better than ever at this price.  But if I were buying today, I would be looking long and hard at what Optoma has in a 1080p system.    (original review follows)    This home theatre projector is going to make a lot of converts this year and turn the projector market on its ear.  There is nothing out there (at present) with this quality of picture for this low a price.    The HD72 has seriously limited image geometry adjustment but if you can mount it to the ceiling on center with the screen at the correct distance (+/- 20%), then none of these limitations will matter a bit.  If you can't you might want to consider remodeling - the picture is that good.  Otherwise, knock off 2 stars and prepare to spend a lot more.    The HD72's 1300 lumens concerned me when I bought mine.  My venerable InFocus LP350 was pretty dim at 1300 lumens but the HD72 seems to use them efficiently enough to allow low ambient light while projecting a very pleasing 80\\" image.  If I owned a high-brite screen, it would likely be even better.    If this will be your first projector, remember to price lamps.  They are expensive and need to be replaced every few thousand hours of viewing.  They tend to lose brightness as they get older so you may not get the 3000 hours Optoma claims.  Also, research screens; what you project on is as important as what your project with.