Chris -- Thanks for the comments on my theater plans. I really want to come over and see your setup as long as you promise me I won't drown.
Chris mentioned Paradigms. I have a set of Paradigm Reference Studio/40 v2 and I love them. I don't want to take those and repurpose them from my living room to my theater so I'm starting over from that respect. Getting a full HT setup with the Studio line is probably more than I want to spend. However, I've been reading good things about the Monitor series. If I can get a good price on them from north of the border, I'll probably do that. (I was thinking B&W too, but I like the sound of my Studio/40s.)
With respect to the Infocus ScreenPlay 4800, that projector is just the Infocus X1 repackaged for the home theater retail channel. It costs a good $300 more for essentially the same projector. I think that I'm going to up the ante a little bit and I now have a Sanyo Z2 on order. This is a much higher resolution (720p native) 16:9 LCD projector. It costs more, but I think that the resolution is going to be worth it. Supposedly the latest round of LCD projectors have the contrast ratio that the DLPs are famous for. Beyond this the Z2 has a DVI input.
I couldn't get the deal on the Yamaha RXV1400 that I thought I could (even though I love the idea of a feedback based autocalibration feature) so I'm thinking the Denon 3803 now. My current 2ch reciever is a Denon and I'm pretty happy with that. I'll see if I can get a good deal on the 3803.
Beyond that, I'm going to paint the wall or go with painted fiber board to begin with and then look at buying a screen. I'm not sure what size I want yet! (6.25ftx3.5ft sounds good to start with.)
Doing this whole home theater thing is a blast! There is so much to learn and read. There are tons of good forums and review sites. The process of just figuring out what I'm going to get is a huge undertaking in and of itself.