If this is a secondary viewing room with less time spent you could upgrade upstairs and use the old stuff downstairs. Of if you want a "true" theater go with a nice Mits HC-4000 or the newer replacement for about 12-$1500 and a 120" screen. You can even use the Wilson Art laminate counter material for a home made screen and it will cost very little and works great in that set up... a friend of mine has it and when the projector is positioned correctly there is no hot spotting.
"You buy a Ferrari when you want to be somebody. You buy a Lamborghini when you are somebody." - Frank Sinatra