I will second Ron's assessment of the lower resolution projectors. I have the same PJ as Ron and I am continually amazed at the picture quality it produces. I have even run some HD clips from my PC and while they are not as good as they look on my 65" Mits they are still quite impressive. They look as good as a DVD to me and much better than SDTV.
My screen size is 94" diagonal and I sit 12' back. Screen door is only slightly noticable to me in very bright scenes. It is there, but once I calibrated the PJ's colors, contrast, brightness, and did a slight defocus, I no longer seemed to notice it. It's only if a really look for it do I see it. I say go for the 858x483 PJ. Too bad the PTL200 are no longer available. It was the best $1,000 I spent on my home theater.
I am thinking of going for the Sony HS-20 when it comes out. Probably thinking summer or fall 2004. Looks pretty impressive. Ron-P, great setup, how did you do the screen?
Bhagi, my screen is constructed with Pine 1x4's from Home Depot and I then stretched Blackout Fabric over the frame, stapled it on the backside then painted the fabric with a custom mix gray from Lowe's.