I picked up a Mitsubishi HC3 recently for $1k, and really enjoy it. It’s only 1/4 HD resolution (i.e. 960x540) but that’s more than enough if you don’t have any true HD content.
Before buying any projector, you need to keep in mind a few things:
Replacement lamps cost several hundred dollars, so be aware that there is a recurring expense.
For many projectors, the room will need to be darkened in order to see the picture.
Placement is key. The picture size depends on the distance to the wall, but you also have to worry about obstructions in the path of the image. Also, you have to have seating arranged so that you can see the image on the opposite side of the room as well as control the devices that are invariably placed next to the projector.
Remember that you’ll need a separate tuner. A VCR would do, or a digital cable box or PVR.