You're right, it is about 2 frames...but I'm hoping it won't be a big deal at 34ms lag. I game on my PC on 3, 24" HP ZR24W and it's super low lag times as well.
It would be nice to get a store with one of these and use a console on it for gaming. I know my local stores typically have only 1 or 2 projectors to try out....which is weaksauce.
Any Xbox fighting games you want me to try specifically? I have the latest Street Fighters and a couple other button mashers.
I agree on the comment of sticking with the AGI price of $2599. If I got in on that, I'd hold my order too for $400 off...even if the site is crap. I was told by AGI over the phone (after the $2899 price quote) that they'd honor the $2599 they did have...so I think you are good.
I'd re-design the AGI site for way less than a projector, personally. It wouldn't take that long and I'd even have a decent store-front with it. Heck, you could BUY a cheap CSS template that looks and would perform WAY better than the 1990's Geocities site they are rocking.