I am currently planning a HTPC and a slowly building a HT audio system. Currently the computer will have component out and composite/s-video out, no DVI. Currently we have an old 27" TV that absolutely has to go! The color is washed out and and the picture is blurry, and does not even have a video in (we only paid $40 for it 4 years ago, I can't knock it too much) Anyway, coming up in December, My employer will be giving me a $1,250 credit towards equipment purchase at Dell. I was looking around and saw that I can buy several projectors for around $1,250. How well would one of these bode as a HT projector?
Let me put into perspective my HT setup plans. Currently, my budget is around $1000 on audio, all speakers will be/have been DIY, so if everything turns out as it should, I will have a decent sounding system. The room is 13' x 16', and the viewing position will be the long way. I'm not too worried about ambient light, I still have my rubberized curtains from my darkroom that should take care of a good deal of the outside light

. I am not really going for a perfect image quality, I am just worried about brightness/contrast of the screen. I realize that you sacrifice brightness and contrast when you go with a projection system and unless you have an uber-projector, it will never be a contrasty as a CRT set.
Will I be able to get a decent projector for (preferably under) $1,250? If I don't buy a projector, I will probably buy a laptop from then and buy another CRT, probably a bit bigger, but not by much. Do you think these lower end projectors would cut it or should I just admit I am not dedicated enough to buy an good enough projector and just get a new TV?