Home theater vs TV : A home theater consists of the following:1. A screen or projection device This could be a TV, or a Home theater projector2. A sound system: Generally, a 5.1 or 7.1 speaker system is sufficient. 3. An Audio-Video Receiver: This is a box type device which controls the signal-flow i.e. all the devices (Projector, speaker, a TV set-up box etc) are connected to it.4. Cables: to connect all of the above

TV vs Projector:I have found that this decision is really about size (of the screen) vs ease. TVs (LEDs or Plasmas) start becoming costly once the screen size is 46 or above. For e.g. a good LED of 60 will cost atleast $1,500, and an 84 LED wil be upwards of $2,500In comparison, a good HD projector (1080p) will cost ~$750 and a good screen will be another ~$200. So in ~$1,000, you can have a projector with a screen as big as 120.Advantages of LCD vs projector Ease of playing typically a projector taken 1 min to start-up. The projector needs to be backed by continuous power suppy, else the lamp may go kaput. Light effect An LCD can be played with full light. However a projector is meant to be played in a dark environment. If there is lot of day-light in your home thater room, you will need dark and heavy curtains. A grey projector screen (ambient light rejecting), also helps in playing the projector with day-light, though it cannot match upto the performance of an LED. Life a projector needs lamps replacement after playing 3,000-4,000 hours (~3 years). LEDs/Plasmas do not suffer from this issue.