"Is that the Sanyo PLV-Z1 you speak of? MSRP is about $2500. Oooch. That's a bit more than the X1... " You can find the Z1 for around $1200. Go to projectorcentral. They have reviews of many projects and there is a link where you can get a list of prices from dealers. Some have free shipping.
I have a similar setup except that I have DM601's all the way around and the LCR600 center. I am using a Paradigm PDR-10 sub and I like it very much. When it is adjusted properly the sound is seamless with my B&W's. A big benefit is that it is pretty cheap too ($350?).