It sounds like you may have been misled by some guy in Australia who didn't know what he was talking about for a lot of what he said, or read a site that I think likely basically plagiarized what he said without really understanding all of it. While both articles I'm thinking of have some good information (most articles do), they also have some stuff that I think has misled a lot of people.
First of all, do "real rooms" have that much other light at all times? Getting rid of other lighting tends to be the easiest thing, at least at night. It is getting rid of reflections that tends to be much more difficult, and even a white room can give basically infinite on/off CR if other lighting is taken care of.
As far as the candle situation, it depends largely on what the light is, where the light is shining, etc. In your case "far away" may only be 10' since light falls off as the square of the distance and so at 10' from a candle you only get about .1 lux. If your white is 100 lux then you would be limited to about 1000:1 on/off CR if you had that situation. But then a fair number of people have light that is blocked by something else, like light behind a couch, ceiling lights that they have point down without any going directly to the screen, etc. Light that doesn't go directly to the screen can be much brighter before the reflections from it affect the images the same.
When these same kinds of questions were asked before I did some actual measurements in an off-white walled setup I have where at the back of the area to the side there are lights shining down. My memory is that with a couple of these bulbs on I could measure something like 100 lux a couple of feet beneath them, but the amount of light that made it to my screen and washed things out was more like around a lux because of the way that much of the light gets blocked and has to bounce around.
Light can be a problem like you say, but as far as your 1/1000th of the projected light making it back to the screen, this is an example of where a room can kill ANSI CR, but high on/off CR can still be useful. Let's take a room where even more of the light makes it back to the screen so that in the ANSI CR test the ANSI CR off the screen couldn't be over 100:1 even if the projector had as much ANSI CR as on/off CR and basically infinite of both. If you don't have other lighting, then a projector with "only" 10000:1 on/off would be limited to around 70:1 in a checkerboard of 10% video on black even in a white room if it had about a 2.3 gamma and the room that limits things to 100:1 would take that down some for a final of around 40:1. Even in that room if the projector's on/off CR was raised to 1,000,000:1 it could do close to 100:1 in that 10%/0% checkerboard instead of 40:1, so there is a case where the on/off CR could improve those dark mixed images even in a light colored room.
And if instead of looking at a full screen 10%/0% checkerboard we considered images like a 1/4 screen checkerboard of the same with the rest black, in that fairly light colored room the projector with 10,000:1 on/off CR and 10,000:1 ANSI CR could do around 60:1, while the 1,000,000:1 on/off CR projector with 10,000:1 ANSI CR could do around 370:1 for the same image.
I used the contrast ratio estimator here:
http://home.roadrunner.com/~res18h39/contrast.htm
with a room reflection level of .02 to limit the off-the-screen ANSI CR to around 100:1 for the above numbers.
Try the above with a projector with less on/off CR like 2000:1 or 4000:1 and a person can see that if they get rid of other lighting, on/off CR can still benefit them a fair amount even if they have less than black walls.
The above isn't even counting things like black screens that can reject a lot of off-angle light.
All that said, if a person really does have a lot of other light that they can't get rid of (not just reflections from the projected light) then getting a high lumens projector can give them higher ending on/off CR and ANSI CR off the screen than a dimmer projector where the projector itself has higher on/off and/or ANSI CR. CR in the images always matters, but when there is a lot of other lighting it is the white level of the projector and the black floor of the room that mostly determines the total range, with the black floor of the projector playing less of a role.
--Darin
It sounds like you may have been misled by some guy in Australia who didn't know what he was talking about for a lot of what he said, or read a site that I think likely basically plagiarized what he said without really understanding all of it. While both articles I'm thinking of have some good information (most articles do), they also have some stuff that I think has misled a lot of people.
First of all, do "real rooms" have that much other light at all times? Getting rid of other lighting tends to be the easiest thing, at least at night. It is getting rid of reflections that tends to be much more difficult, and even a white room can give basically infinite on/off CR if other lighting is taken care of.
As far as the candle situation, it depends largely on what the light is, where the light is shining, etc. In your case "far away" may only be 10' since light falls off as the square of the distance and so at 10' from a candle you only get about .1 lux. If your white is 100 lux then you would be limited to about 1000:1 on/off CR if you had that situation. But then a fair number of people have light that is blocked by something else, like light behind a couch, ceiling lights that they have point down without any going directly to the screen, etc. Light that doesn't go directly to the screen can be much brighter before the reflections from it affect the images the same.
When these same kinds of questions were asked before I did some actual measurements in an off-white walled setup I have where at the back of the area to the side there are lights shining down. My memory is that with a couple of these bulbs on I could measure something like 100 lux a couple of feet beneath them, but the amount of light that made it to my screen and washed things out was more like around a lux because of the way that much of the light gets blocked and has to bounce around.
Light can be a problem like you say, but as far as your 1/1000th of the projected light making it back to the screen, this is an example of where a room can kill ANSI CR, but high on/off CR can still be useful. Let's take a room where even more of the light makes it back to the screen so that in the ANSI CR test the ANSI CR off the screen couldn't be over 100:1 even if the projector had as much ANSI CR as on/off CR and basically infinite of both. If you don't have other lighting, then a projector with "only" 10000:1 on/off would be limited to around 70:1 in a checkerboard of 10% video on black even in a white room if it had about a 2.3 gamma and the room that limits things to 100:1 would take that down some for a final of around 40:1. Even in that room if the projector's on/off CR was raised to 1,000,000:1 it could do close to 100:1 in that 10%/0% checkerboard instead of 40:1, so there is a case where the on/off CR could improve those dark mixed images even in a light colored room.
And if instead of looking at a full screen 10%/0% checkerboard we considered images like a 1/4 screen checkerboard of the same with the rest black, in that fairly light colored room the projector with 10,000:1 on/off CR and 10,000:1 ANSI CR could do around 60:1, while the 1,000,000:1 on/off CR projector with 10,000:1 ANSI CR could do around 370:1 for the same image.
I used the contrast ratio estimator here:
http://home.roadrunner.com/~res18h39/contrast.htm
with a room reflection level of .02 to limit the off-the-screen ANSI CR to around 100:1 for the above numbers.
Try the above with a projector with less on/off CR like 2000:1 or 4000:1 and a person can see that if they get rid of other lighting, on/off CR can still benefit them a fair amount even if they have less than black walls.
The above isn't even counting things like black screens that can reject a lot of off-angle light.
All that said, if a person really does have a lot of other light that they can't get rid of (not just reflections from the projected light) then getting a high lumens projector can give them higher ending on/off CR and ANSI CR off the screen than a dimmer projector where the projector itself has higher on/off and/or ANSI CR. CR in the images always matters, but when there is a lot of other lighting it is the white level of the projector and the black floor of the room that mostly determines the total range, with the black floor of the projector playing less of a role.
--Darin