As a avid gamer, I am glad to see a thread on input lag. Input lag with all of these fancy image processors is the bane of gamers everywhere! I went through the same thing trying to find a widescreen 24" LCD for my computer. Come to find out that most screens not only have lag, but significant lag. A good fast display for most people would be a half frame (8ms) or less of input lag. An acceptable display would be one full frame (16ms) of lag. Anything 32ms or over in my opinion is a show-stopper.
To the original poster, you must test with a CRT screen and not a laptop LCD. Your laptop screen will have lag and unless you test your laptop versus a CRT, you will not know how much lag. So your results are skewed to begin with. Altough, there are some LCD's like the one that I found for my computer, based on TN screen technology, that have 2ms or less of input lag.
I personally am looking at the Panasonic AE3000 as it has a input lag reduction gaming mode. Has anyone yet tested how fast the AE3000 is in this mode? Here is a quote from the Projector Central review of the AE3000:
"Gaming Mode. As far as gaming is concerned, video delay is not a good thing, and audio delay does not fix the problem. So the AE3000 has a feature which is not called Gaming Mode, but should be. It is called Frame Response, and it lets you adjust the speed of frame delivery from the buffer. Your options are "Normal" and "Fast." "Normal" will provide normal video processing and results in a frame delay of about 3 frames (assuming Frame Creation is off). "Fast" will eliminate some of the standard video processing overhead and cuts frame delay to about 1.5 frames. You can see the effect on lip synch when switching between Normal and Fast, as lip synch problems pretty much disappear in Fast mode. There is no way for a video picture to appear instantaneously with zero delay on any digital video display, so the Fast frame delivery feature on the AE3000 is about as good as it gets. Put the AE3000 into Fast frame response mode, select Dynamic calibration with a few color tweaks, and you end up with a magnificent high resolution gaming system.
(By the way, we tried to activate Frame Creation while setting Frame Response to "fast" to see if the projector would explode. Apparently, the engineers anticipated this. The AE3000 simply defaults to Frame Creation and ignores the fast Frame Response command. The AE3000 knows when it is in the hands of a stupid user.)"
He does not say how he came upon these numbers he is quoting. He says 1.5 frames of lag, or about 24ms in gaming mode! That is barely passable if it is true. The quoted number of three frames, or 48ms for normal mode is truely horrible. That is almost an entire 1/20th of a second which is really noticeable. I think you would have some lip sync issues watching movies with that much lag.
If the lag on the AE3000 really is that slow, I might have to look into other projectors like the Sanyo PLV-Z3000. Please, keep the posts coming on this important issue!