Some weeks ago we got an Infocus 4805 projector. I picked that one because it got good reviews and at $1500 was one of the cheapest 16:9 DLP projectors I could find. Crutchfield have a 30 day return policy with no restocking fee or any such sillyness, so I thought I'd be worth to try out rather than ordering a more expensive one.
If you go higher you are mostly paying for higher resolution, which you can't use anyway if you just use it for DVDs and a PlayStation 2 (like me).
It's awesome. We don't even have a screen yet (those things are expensive...) and I'm super impressed. We can't easily make it dark in the day, but at night it's looks great.
We use the DVI connection on Vani's powerbook to watch DVDs (requiring the M1-DA cable). Digital connections rock, I keep saying "oooh, aaah" when I see it. I also got a cheap component cable for the playstation which was big upgrade from using the composite cable.
I couldn't get the VGA connection to work properly with my powerbook, but I didn't try very hard after seeing how nice the DVI connection makes it look.
As a side note, Crutchfield rocks. I can highly recommend them.
4805 product description on the infocus site.