Hi,
·What is the better projection mode; LCD or DLP. and why?
Each has their own pros and cons, so what may be (in my opinion) the better of the two, may not be for someone else.
LCD:
Can suffer from dead pixels,
the gaps between pixels on the LCD display panel can be seen as a screen door pattern if sat too close, (approx less than 2 times screen width).
Dark greys instead of black.
DLP:
Rainbow effect from the way it produces its' image (rotating colour wheel and lots of tiny moving mirrors)
Dark greys instead of black
Screen door if sat less than 1.5 times screen width.
I personaly prefer DLP technology, but others prefer LCD. Different models produce better images than others, so it can't always be a black and white answer as to which type gives the best picture. For instance, one particular LCD may produce a better image than a particular DLP, but then you'll probably be able to get another DLP pj that looks better than both.
Lumens can affect how close you put the pj to the screen, especialy if it is a low light pj, but these are quite rare now, so shouldn't be a problem. High lumens can produce a reduced contrast ratio/washed out image, so unless you need a huge picture from a long way away, 1000 lumens is probably not a bad figure.
If you can't watch in a totaly light controlled room, then a higher lumen pj may be the only answer. A grey screen would be the best screen in this case, so as to reduce cross reflection of ambient light and improve contrast ratio and black level.
Not all pjs are prone to dust, but most can suffer from this. Some newer models have a completely sealed optical path so no dust can get in. Others may have cleanable filters.
As mentioned, each type has it's pros and cons, but if you're spending around £3000, you should really see some for yourself.
Currently the latest NEC DLP machine, the HT1000, looks like an excellent machine and can be had for just over £3000. Meva has just bought one and is putting it through its' paces, so we should soon get an idea of its' performance. It has 2000:1 to 3000:1 (variable) contrast ratio which is the best of any digital projector so far, and it has 1000 lumens (reducable to 800) so is not too bright. It's xga too, so has enough resolution for full resolution dvd playback.
Other good looking machines are the Sanyo PLV 70 which at around £1400 is a cracking price for a good performer. Obviously not quite in the same class as the NEC, but damn good for the money by all accounts.
The Panasonic range get good reviews such as the AE100, AE200 and AE300.
This is just a tiny selection, but there are a great many more out there. Resolution starts from around 800 x 600, and this I would say is a bare minimum, and can produce excellent results.
Many pjs don't have very good internal scalers, so images produced from a standard dvd player may not look particularly good. Scan lines can show up and edges may have a stair step look to them. Quite often using a suitably equiped PC (HTPC) can produce results that are so much better, you wouldn't think it was the same projector.
If you're not a PC person who likes to build and tweak, then an external scaler such as the ProV, Iscan or Quadscan will line double/triple/quadruple and produce an image that is line free and far more film like.
Getting the right projector for your room can be a problem. You may need it to have a certain 'throw' distance, so that it can be placed in a certain place such as a coffee table or on the ceiling. Too long or too short may mean the pj you like can't be sited where you want it.
Screens can be a can of worms too - high gain, lower gain, grey screen, white screen for example. What size? Permanently fixed or an electric/manual screen that comes down from the ceiling.
With LCD always try to see the one you buy due top dead pixels, or if buying unseen, make sure the company has a good dead pixel return policy.
Not sure about lamp prices, but they are generaly quite dear (AE100 has a cheap lamp however). Not sure if price japan do them, but you never know.
I've rambled a bit, and I'm hoping someone else can be a bit more specific than I've been, but hopefully I've pointed out a few things for others to add to at least.
Also try avsforum.com for a far greater coverage of pjs and related topics. More reviews over there so may help you decide which ones to consider.
HTH
Gary