I don't know if someone already mentioned this, but I was reading about the new macmini and this just screams out at me to be part of the projector. It's small (6.5"x6.5"x2"), presumeably quiet, has a DVD player, and will work with any monitor (although you probably need a dvi to vga adapter).
Now granted they cost starting at $500, but if you could afford it I think it would be a perfect addition to the ol' home theatre.
http://www.apple.com/macmini/

http://www.viaembedded.com/index.jsp