The fan is loud. No way around it. I feel kinda silly spending so much on sound proofing the room downstairs when this thing is on. What this is for me is a compromise, as I wasn't spending 1k+ for my first projector. The projector is cheap yet throws an awesome picture, but is by no means quiet.
If it's any consolation, the fan no longer bothers me as much as it did when I first put it up...kinda blends into the background during the movie. You can adjust settings (echo mode, etc) in order to mitigate the noise somewhat.
I think when the warranty is out on this unit I will try and replace the fan with another specifically designed with silence in mind (if possible).
Remember, this is only my opinion which may mean absolutely nothing to you as my threshold is most likely different from yours. As a comparison, I felt that the slim model PS3 was pretty loud, now it's the second loudest piece of equipment in my room.
I think it's past time to upgrade my equipment and my room.