Setting up Benq 5120 Projector

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I have today ordered my first pj (benq 5120), and I am a complete novice. I have a through lounge and intend to put the pull up/down screen up in the middle of the room (just hanging in free space from the ceiling). Is this recommended, as it appears that screens are usually put against a wall? I should add that I was only planning to buy a cheapo screen probably from ebay.

I am planning to put the projector on a shelf above the window (about 7' high) facing the hanging screen 12' away. My question is; To achieve a quality screen image of about 6', is it better to have the projector closer than 12' away. I have this theory that the further away a projector is from the screen the poorer the picture quality (this is probably a bad theory)?

Any views/opinions will be appreciated?
 
The only real concern about free hanging a screen will be if it swings on air currents.

It's better to have the PJ closer to the screen (as long as it isn't at the end of the lens' tolerance) rather than further back and zoomed out.
 
Binbag, Thanks for the info. Forgive me if this is a silly question, but if I ceiling mount the projector to move it closer to the screen, is the distance calculated from the lens to the screen horizontally. In other words if the projector lens is 8' high but the bottom of the screen is 3' high (from the floor) is this taken into account when calculating the distance from the projector lens to the screen?
 

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