Help! Too Much Info to process!

Guys

Hello to everyone.
First message in AVS, so first of all thanks to all the new guys (for not making me feel dumb asking questions) and the pro's (MississippiMan, PbXXX, etc, etc) for answering them. I recently bought a house and convinced management (A.K.A the wife) that a theater room was a neccesary must! So far I think I have the handle on the distance, location, type of projector (room is dark basement, so decided on theater projector rather than video), etc. My budget is less than $2500 and based on what I read I can do something decent. Im thinking about going w/ the EPSON HC 8350 (based on numerous reviews from several sources) so the first question is:

1. Is this the best option? Suggestions? Priced around $1200 is a balance and doesnt eat away the budget.

Second and most important issue to solve is the screen. I definitely dont want to loose contrast, resolution, etc or at least the least amount possible. Im shooting for a 100" screen (4'1"" x 7'3") . The first question in this category is

2. Which is better, painted or fabric? I know must people will say "it depends..." but I also know there gotta be one that has an advantage over the other.

If choosing paint, then Ill come back later after I read a bit more on what the best method of construction is, it would be of great help to point out a thread. But that leads to one question that I havent found the answer.

3. I have read silverfire and the mudd paint. Pros? Cons? Which one is the favorite? Why?

If choosing fabric is the way to go, then same thing, Ill come back later after I read a bit more on what the best method of construction is, it would be of great help to point out a thread. But that leads to one question that I havent found the answer.

4. I know blackout fabric is the easy way out, but quality is lost. How much? Is it an acceptable loss? Suggestions?

5. I also read about high end fabrics, such as stewart firehawk, etc. Is there such a substantial increase in quality in going this way? Is firehawk the best?

Sorry guys, I know its quite a bit but I have an info overload and want to have the setup ready for Christmas....Thanks!

@ Pessimus
[how far back will you have the projector mounted (throw distance), and how much ambient light do you think you're going to have?[/I]

I also have to add a wall to close out a section of a basement that currently has an open concept kinda theme going on. The estimate distance will be between 11.5 and 12.5 ft, when done, depending if I go for the in-wall cabinet or keep it simple and do a simple wall. I checked and both these distances should be fine. The ceiling height is what limits me, since its 7.5'. In term of light, its an underground basement with a very small window that even during the day, its pretty dark. This window will be out of the movie theater once I add the wall.
Im shooting for a final screen w/ black velvet and trim, very much like the one cgrant34 did (see below) except I want to try to put it inside a "cutout" within the drywall for two reasons, to avoid any one inadvertently hitting it and to add led rope light.
http://www.avsforum.com/t/1423942/first-diy-screen-build

@MississippiMan
Is it safe to say that by recommending RS-MaxxMudd Standard, you would pick this option over Silver Fire? Ive also read many people recommend the nylon paint strainer...Is this only for SF? Is there any advantage by going with TWH over sintra as a substrate?