Look at the Mitsubishi 5500 projector. It's got a rebate right now that also includes a free bulb... 5000 hour bulbs in low power mode. It's definitely an entry level machine that sucks by comparison to a JVC RS-XXXX or upper end DLP. But it's quiet, relatively easy to setup, has a couple good features, and most important of all, it's really cheap after rebate.
Dalite High Power screen material most definitely with it as it isn't really bright in low lamp mode (and I like minimum 30 ftL after living with an Infocus 777 3 chipper long term). Depending on setup, you can get the material itself for a song if you build your own frame and salvage it from a cheapo manual pull down....
As for receiver, the Onkyo's are very good recommendations. The Pioneer cheapies have a bit more "warmth" at the expense of detail. The Marantzs are surprisingly musical sounding, but a bit more expensive for the same or less feature set.
There are a number of new BD players hitting the market right now for not a huge amount of cash. JVC just released one. The others have newer versions hitting. The Oppo is going to be hard to get your hands on anytime soon and is expensive by comparison (expect >$500), but it is a truly universal player and has some features the others just don't have.
If you are only doing normal DVD playback, the standard Oppos are pretty decent and won't kill the pocketbook.