The difference is 2 lenses. (sorry couldnt resist )
Projectors with 3 lenses are CRT based. Projectors with 1 lense are DLP or LCD based.
CRT based machines require dark rooms and will give fantastic black levels. LCD based machines are much brighter so they can be viewed in rooms with lights on (ie board rooms). However, their black levels are terrible (AKA: non existant).
Gregg
The 3-lens units (CRTs, as Gregg says, or Cathode Ray Tubes) are also much larger and more finicky to maintain, and much more expensive to get into. They still give the best picture available, and it can be amazing in a properly darkened room.
The various 1-lens projectors range in quality from horrible to close-to-CRT. Some are quite bright, though nothing like a direct-view TV set. There's a lot of emerging technology regarding projectors, the price drops every year and the picture keeps getting better. As Gregg says, deep blacks are a problem.
I suggest you check out the projectors area of AVS Forum and do a lot of lurking until you get it sorted out!
Jan