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My wife and I are in the midst of the exact same purchasing decision, at virtually the same price point.
My best advice is to go to the stores, and watch each screen for a LONG time. The resolution of the screen is the LEAST important factor, but the most heavily advertised value. Many sets with identical stats listed, but in the flesh there are differences.
DLP is a type of rear projection, also see LCD projection and LCoS projection (or SXRD in Sony-talk).
LCD flat panels- I HATED these. The pixels looked all smeary any time there was motion. Until I saw the better Sharp and Sony models. Particularly the nicer Aquos 42" screen. Its my favoritem but of course its also $2000, about $500 over my budget. So there are actually some sweet LCDs, but a bit high in price.
Again, just go watch all of them. Start there. I am still undecided.
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