That depends on how sensitive you are to SDE. According to Art's review (http://www.projectorreviews.com/Manu...LVZ5/index.asp
), SDE could be visible at 1.3 x screen width, if you look for it (you're sitting at 1.28 x screen width). He recommends a maximum of 110" diagonal screen (if I read his review correctly) unless you have a high gain screen. It (the SDE on that size screen) wouldn't bother me, although sitting that close to a 118" screen would, just from a visual perspective standpoint. Also, depending on your screen gain, the Z5 may not be bright enough for you on that big a screen.
You should also read the following thread: http://www.avsforum.com/avs-vb/showthread.php?t=736150
NOTE: Art's review was just posted last night. It sounds like the Z5 fits my HT/LR use just fine. I have a 106" diagonal, Da-Lite High Power screen (gain = 2.8, for shelf mount, sitti), so I don't need (or want) a light canon like the AX100 (I can't afford any of the more expensive DLPs and the offsets of the under $2K ones won't work either, I'm sitting at 11' also). The other alternative, for me, is the Epson Cinema 400, but it's too bright too, and doesn't throw as good a picture (Art reviewed that one, and the AX100, too).