I posted this same topic in the LCD forum, but I believe for that very reason I am getting no suggestions of rear projection units.

Here is the link to the original thread:
http://www.avsforum.com/avs-vb/showthread.php?p=16697632&posted=1#post16697632

I'll also post the information below:

So here's the situation. I'm about to move down to FL after having recently graduated college with a degree in accounting and finance. I'll be moving down with my fiance who also has graduated with the same majors.

We've been saving money for quite some time now with the assumption that in these tough times we may not find work immediately. We've actually surpassed our savings goals, and with our excess money, I'd like to upgrade her family's current entertainment center for everything they've done for us over the past couple years. Their current system archaic, consisting of a 32" non-HDTV CRT and an old school DVD player.

I already have a Blu-Ray Player for them. I'd like to purchase for them:

1080p HDTV - 47" or bigger
5.1 Audio System
TV Stand

I understand a $1200 budget is going to be tough. My first concession will probably be to go with a HTIB. This can probably be purchased for $300 or so. Then instead of a flat panel LCD, I can probably go with a rear projection tv. Then of course, pending the type of TV, I'll need to get some sort of tv stand to house all of the new equipment.

Any suggestions?

Well, you could do something like this 47" 1080p Insingia from Best Buy:

http://www.bestbuy.com/site/olspage.jsp?skuId=8632875&st=Insignia%EF%BF%BD+-+47%22+Class+/+1080p&lp=1&type=product&cp=1&id=1194052042360

What about a wall mount vs. a stand? Cheaper and better looking.

Yeah a cheaper flat panel like the Insignia probably is the easiest way you can do this and have $400 left over for a cheap 5.1 audio system and very cheap stand.

The only DLPs that have been sold new at that price range over the last six months are the discontinued HL50A650 or HL56A650, 50" and 56" respectively. But they're hard to find today and may be refurbs or open box units.

You can find Mits 60" 737 for $995 some places, but then you'll probably be a couple hundred over budget. It only weighs 65lbs, so the stand doesn't have to be too sturdy.

Give serious thought to a used display. People are Craigslisting rear-projection units in great condition so they can hang something on their wall. This could allow your receiver and speaker choice to be much nicer and add some OOOMPH! to their HT setup.

I know people can be reluctant to give a used gift, but I've seen 65" displays for less than $500.