As Thrash mentioned, the room becomes a significant factor with front projection. So much so that a cheap projector in a well treated room will give you a better image than a projector that costs 1000s of pounds more in one that isn't. Of course, a decent projector in a well treated room gives you the best of both worlds and the results become stunning. I'm quite fortunate in that the misses didn't mind me repainting the lounge dark chocolate brown, the doors, skirting, and radiators black, and the ceiling a combination of grey paint and black velvet panels coming out from the screen a meter or so (tbh the room looks dead smart and much better - to my eyes anyways - that it did before). You don't have to go that far for good results, although I highly recommend having velvet panels or dark material coming out from the screen on the ceiling and some treatement behind it and at the immediate sides (dark curtains work well) , as well as getting rid of any bright, reflective colours. The more you can do the better.
Your list seems pretty spot on and for your budget you should definitely check out the JVC projectors (the HD550 is about 3.5k and is very nice - as are last years HD350 and HD750 if you can find them). It's also worth doing some research on the screen as this has a large impact. There's all different kinds of flavours, from grey to matt white to very bright white/silver, angular and retroreflective. One suggestion - i've spent 1000s of pounds on screens over the last few years - on my 7th or 8th now - and by far the best has been a Da-Lite High Power imported from the states that cost a fraction of my previous experiments. Pound for pound the best upgrade to my home cinema by a country mile and I wish i'd discovered these years ago - the image pops like plasma and is so bright you can increase the screen size significantly. It bascially looks like a 120" panel on the wall rather than a projected image.
It's worth noting that, despite all of the above, you won't be able to match the black levels and contrast of a decent plasma. You can get close, and the image will be more film/cinema like, but you won't get inky kuro blacks (although getting 'better' than the cinema is certainly achievable). The real stopping power is obviously the size. My current screen is 4 times that of a 60" plasma and if I could go larger I would. There is no comparison when explosions are hitting you in the face and bullets flying about as to which gives a more absorbing and immersive experience.
//edit
Don't let my ramble put you off and if I made front projection sound like a huge hassle, it isn't - there's just a few things to learn and infinitely more things to fiddle and play around with
Go see a demo!
