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The H31 is a little brighter then the 4805 so that would help with your lighting. You could also build a screen with blackout cloth and a wooden frame. You then just paint the cloth (actually you paint the vinyl side) with any numerous paints (check avsforum for the differen types of paints)...

The InFocus Home ScreenPlay 4805 is considered to be a great budget pj along with the Optoma H31 both can be had for arround $1300.

I know this is kind of going the other way with it but is there any chance you could get a PJ? There is nothing smaller then a pj and a screen. If you can control the light it might be worth considering. Even if your are only 8 feet away from the screen you could still do a 55" diag screen...