I have tried the 7060 out quite a lot now, I watched 'Wanted' on it last night and it was AMAZING in 720p. I saw very few rainbows ... but playing Call of Duty world at war they are visible a lot of the time .... and Sin city was a bit of a nightmare for rainbows, but I guess it would be.
I'm hoping that my eyes will get used to it and that it stops bothering me in COD5. The blacks and colour are truly amazing and the brightness is fine for what I think is a pretty huge screen (90+ inch) .... I don't think I actually want it any bigger. I'm guessing that in reality the limiting factor for the projector is now going to be calibration and room reflectivity. I have one big annoyance which I'll post back if I manage to fix it. The projector won't take 720p over VGA which means that I can't use my laptop with 1 to 1 pixel mapping

I have got powerstrip to send out 720p which the projector recognises and then adds black bars on all four sides

If anyone has any tips it would make my day.
ps. I looked in the manual and it says that only component and HDMI support 720p.