Recs.
Updated
Great colors, a high resolution, and stunning brightness (in both 2D and 3D) make this the best under 1000$ projector from Epson. It's a great entry-level projector.
SpecsUpdate
Pros
Pro Very good picture
Epson 2040 has a native resolution of 1920x1080. It is capable of playing full HD 1080p content. The Detail Clarity Processor (also used in expensive Epsons) adds more detail and makes the picture look even higher in resolution than it is. The 2040 also has a dynamic iris installed for slightly improving the black levels. In a dark room, it makes black colors look darker and deeper.
Cons
Con A blurry picture or extra input lags
This LCD projector has motion blur problems during fast movie scenes. Fortunately, it uses the Frame Interpolation technology, which analyses the picture and adds frames to it. This noticeably helps with the motion blur issue. On the downside, Frame Interpolation adds extra input lags, so you can not use it while gaming.
Con Not a movie room projector
A good movie room projector needs great contrast and black-levels for an excellent picture. This projector does not have them. It's meant for a family room with ambient light, where any blacks would get grayish anyways. If you expect a great cinemalike experience in a movie room, this projector will not cut it.
Con Complicated setup
This projector has a slight negative throw offset. The bottom edge of the image is around 5% of the total image height below the center of the lens. If you wish to mount it to the ceiling, you will probably need an extension tube to drop the projector below the ceiling. This is important for a proper image placement.