Ok... which projector, and which screen?
How effective is light control in the room that you intend to use it in?
What color are your walls?
What are the dimensions of your room, and where do you intend to sit in relation to the screen?
This is for a home theater I assume? If you have full control over the ambient lighting, go for the projector, you will be amazed at the size. However, if you plan on using this during the day and you don't have full control over the lighting, I'd go with the DLP since projectors will look washed out when there is stray lighting
The problem with DLP is the size and bulb replacement. Bulbs can be extremely expensive and if they ever become impossible to find when you need one, your tv is now useless. I say go for the projector. It'd also be way easier to sell if you ever change/upgraded/moved, etc. A DLP is yours for life
16 x 20 is quite a large room.
Which projector are you considering and which screen?
120'" is just plain huge to be sitting 6 feet away, that's like sitting on the third row at the movie theater.
You'll be fine with the TV, but the pj can change in size, you can always get different screens, but some pjs aren't very good for gaming, the video processing doesn't work that well with video games. (LAG!!!)
My dedicated theater is 14x20 with a 126" screen. You can get away with the PJ and be extremely happy. Save yourself some coin and check out Focupix screens from www.htdepot.com. With todays PJs I would suggest a white screen as the blacks are pretty good. For PJ I would suggest Panny 4000U or Epson. I have a JVC PJ myself.
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