In your price range I wouldn't bother looking much further than the Z2 or Z3 if you can find it for a good price. This is a highly regarded "low price" projector and honestly I've never seen anythign (in the price range) out perform it. --there's probably nothing better until you spend upwards of 3x as much..and then people STILL debate it.
The opto seems to be the best DVD player for the money, possibly the best for 3x the money as well.
Projector's are TOTALLY worth it, nothing makes a movie look and feel more like a "real" movie.