http://www.projectorcentral.com/

Lots of information there. One thing you have to keep in mind with projectors is the replacement cost of the bulb. Depending on the projector they last between 2000 and 4000 hours, and can cost around $350 to replace.
I'm thinking of upgrading my Panasonic PT-AE1000U, the 8000 is coming out soon sporting full 3D and twice the lamp life of my old one. It won't be within $1200 dollars though.

The Optoma HD20 comes out pretty good and the lamps are cheaper too, $119 for 3000 hours.
http://www.projectorcentral.com/Optoma-HD20.htm

They recommend the Optoma GT750E for 3D gaming. Slightly cheaper then the HD20 but native 1280x800 instead of full 1080p http://www.projectorcentral.com/Optoma-GT750E.htm

A good screen is important too, expect to pay over $400 for one
http://www.projectorcentral.com/projection_screens_review.htm
(Prices have gone down a lot, my screen was $1500 7 years ago)

Only 80"?


I play and watch blu-ray movies on 117" :)

I won't bother with 3D until they make them glass-free

Contrast is very important, my old one had 15000:1.

My new one(Epson EH-TW3200) has 25000:1 and I noticed a much better picture in a "lighter" room

Ok, this was very useful. I don't care much for 3D so I may go for the HD20 after all. I don't care much for the lamps, 2000h will last me several years.

Thanks, great help!

Good to see people are discovering projectors. They are awesome bang for the buck size wise and their picture quality is excellent.

Here are some things I can suggest by looking at this thread thus far.

1. Throw distance brightness and screen size:
If your room is 3m x 3m, you really shouldn't go larger than 60 inches in screen diagonal size. Even that is overkill but still awesome at the same time.
If you keep it under 60 inches you can use a short throw projector and mount it in front of you (better on the celling with a mount)
However you also can get a mid range/long throw projector and mount it at the back of the room on a shelf or celling. Keep in mind tho that if you play Wii or Kinect standing up, projector setup behind you doesn't really work out. ;)
Brightness wise, over 2000 lumens is overkill if your screen is 60 inches. 1500 lumens would be a nice sweet spot.

2. resolution:
Lets move forward with the assumption that you are setting up a 60 inch screen. At that size you really don't need a 1080p projector. DLP technology has a way of masking resolution and 720p will look very good on a 60 inch screen - https://lh5.googleusercontent.com/-qWABY8WHSBQ/Tbl6kludX9I/AAAAAAAAAgg/FPRm8enx5LQ/s184/pixels.jpeg
I used a 720p projector on a 60 inch screen and switched to 1080p and really couldn't notice the difference. Only with a 92 inch screen I later got could I tell...

3. 3D:
There are 2 types of projector 3D. Pretty much every DLP projector that is 720p is PC 3D capable. They let you play PC games and watch blurays using PC software and DLP link glasses technology using frame sequential 3D which is 720p per eye. They also allow for PS3 and 360 3D gaming using a 150-200 dollar converter boxes like optoma 3Dxl

The other type of 3D is HDMI 1.4 3D which uses frame packing technology and allows for 1080p bluray and 720p gaming. There projectors are usually more expensive and less flexible for PC gaming.

My recommendation:
Get a short throw 720p projector and mount it on the celling close to the screen. My friend just bought this one and it is very good -http://ncix.com/products/?sku=76014&vpn=W710STGogglesGames&manufacture=Bundle%20Deals&promoid=1224
Screen wise, dont overspend as you are clearly not building a theater in a 3x3 sized room. 100 dollars for a 60 inch screen is plenty. Epson sells an 80 inch screen called Duet which is a little large but very easy to set up.

When it comes to projectors, 30% better picture quality costs 5X as much and entry level setups look quite excellent. Dont think that you have to spend 1000+ dollars on a projector for it to look good.

How in the world has the Epson 8350 not been mentioned yet? Isn't it in general considered the King of entry-level 1080p HD Projectors for the money? I personally plan on nabbing one of these on Black Friday.

Its a legendary projector but its getting a little old... 2010 model, yet last time I checked its still 1200 bucks.

Also its too large...its 2X as large as some 1080 DLP projectors.

Finally, I dont think it fits his budget and space requirements. A room of 3 X 3 meters and 1200 bucks.

I hear you there, still pretty much unparralled in terms of features recieved and quality of picture for the price though. Main reason I'm getting it is the Lens Shift, going to need it for my setup. And I'll nab it on Black Friday when it is more than likely to hit $800 again, or less even.