Yep, I have found some other really lengthy discussions on the net. These are all really great threads of discussion in this forum, and I have picked up some very good ideas - so thanks again.
I think I will follow the suggestion of having and LCD and projector in the room to have the best of both worlds. As we are building a new house there are lots of other items to spend on, so putting in an LCD first and then a projector later on down the track makes sense for us now.
The kids will appreciate this, and I will just have to manage the risk of McLeod's Daughter's being watched in their when I want to use the room (just kidding)