We have one here, an Infocus. It's actually my roommate's projector and it rocks running the 360 in 1080i. With a nice 5.1 system and a 122" screen, it looks and sounds great!
I have my 360 hooked to a Sony Projector (bought from a CAG here) on 1080i and it looks great...even on a white wall (Im moving soon, I'll buy/make a screen then).