Shouldn't be a problem, you can ceiling mount the projector, just like my setup.
Main disadvantage of an LCD/DLP projector is the lamp life...will last about 3000-5000 hrs and cost $300 (or P35000) to replace. It will probably go dim before EOL (end of life), but on the other hand you get the BIG screen you want.
BIGGER than any TV for the same price. You shouldn't use the projector longer than 10 hrs straight. I usually rest it when used for 5 hrs.
You can try looking at LED projectors, they're designed to last 10000-25000 hrs I think. Disadvantage is the low resolution (800x600) and lower brightness.
For the LCD TV, I don't have to worry about length of use. Problem is the poor sound quality (compared to 200W 5.1 speakers) coming from the built in speakers.
AS long as you have poor source discs, they will be unbearable to watch in either the 40" TV or the projector.
Poor source discs = 3 stars (out of 5) and below PQ.
[ Stars: 1=throw away, 2=will endup sleeping (like Film Transfer), 3=still blurry but somewhat watcheable, 4=passes for TV viewing, but not good enough for the projector, somewhat less than VCD quality, 5=original DVD quality ]
I should mention that the HTPC I am using does improve the PQ significantly (no need for too much research, see steps below for a simple HTPC that doesn't involve too much CPU processing).
If your PC video card can handle dual display, even better, one for your LCD/CRT PC monitor, the other for your TV via VGA.
1. You may want to download the latest video driver for your card (NVidia, ATI, depending on type).
2. Set the output resolution to 720p or 768p depending on what the TV supports (probably 1360x768 at > 60Hz < for an LCD 16:9 TV).
3. Play the DVD on your PC using PowerDVD (its better than DVDXplayer). -That's it.
The Voltes V DVD-9 (3 stars) I am watching was really bad coming from the old Pioneer player, but was acceptable (4 stars) when watched thru the HTPC, from my viewing distance. An OPPO is too much $$ when using these types of discs.
..will post pictures (R71) soon...
I've always been hesitant with choosing projectors, not because of PQ but more of convenience. I don't have space to mount the projector as my seats are close to the wall behind me. Though cost would be a big plus factor. I'll try check it though at Listening Room.
You mentioned "...We just use the 40" LCD to watch f*ke disks/TV series. Unbearable to watch at times really, specially those DVD-9s...". Did you mean unbearable with your R71 LCD or with the projector? Or both? Aside from larger size with the projector, what advantages/disadvantages do you find w/ your experience w/ projector and the LCD? Also, when will you post your R71 setup?
This also brings me a new area to reseach on: HTPC. I'd need to look into this source and hook it up to my display.