Looking great, but good luck on "someday it will be done)!
I have a dedicated media room in my house with an Epson 5300 projector - depending on your desired size it is much less expensive than a flat screen. My room can be totally darkend, but we often watch sporting events with lights on and I find the projector to be plenty bright in this case. Movies are just like going to the theater, with a big perk of being able to use the pause button. There are some good forums (I mainly use AVSForum) with others experience. Start with screen size and sitting distance (blue tape on wall helps to visualize). I picked up a DIY screen for low cost from
Carl's Place - Projector Screen Material, Kits & More!, but there are other options (just more expensive or more work - lowest cost seems to be using spandex on a wooden frame, I have not tried this but several threads over at AVSForum). Lumens; there is a tool on Projectorcentral, that will give you lumen output vs distance/screen size for most projectors available. For gaming you need to be concerned about lag time - I don't game on our projector so I did not look into this much.
One word of warning though - once you get the home theater bug it is very difficult to cure!