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Going through the research right now with approximately the same budget, maybe a tad bit more.
Here is what I have found.
First, there are flat panel TVs (LCD and Plasma) and projection (DLP, LCD). The projection models are about 14-19" deep.
I think the LCD picture is the sharpest, but they are only available up to about 40" and are not competitive pricewise above 36". That is due to the manufacturing cost of large LCD panels...
I think plasma is the best picture in the larger panels, 42" and higher, but clearly are expensive. They are coming down in price due to the LCD competition.
The LCD/DLP projection units are a very good picture/price combination. I think the major drawback for them is view angle. In my room, we need a relatively wide viewing angle and they don't cut it for me. the picture gets darker as you move off center. Not too bad, but noticeable.
I've decide to go for a 42" plasma. After much research I am going with a Panasonic industrial plasma monitor for $2100. It is the highest rated picture of an plasma, including the Pioneer units. It is the unit sold to companies for tradeshows, video production, etc. Must go through a dealer.
Drawback is that it is only a monitor. No tuner or speakers. Doesn't matter to me as I will use a cable box (no tuner needed) and will connect to separate speakers through a receiver (already own). Thus for the price of a DLP projection (maybe a little more) I'm getting the plasma.
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