Projector native resolution?

[Fightguard]

newbie question here
Specs for rear projectors usually list native and maximum resolution. Maximum resolution is self-explanatory...but I'm not exactly sure about native resolution. Is it like the "default" or "optimal" resolution? And what are the downsides (if any) of using a projector at it's max resolution?
What is the "common" or "standard" resolution people usually use for their HT setups?
I'll probably be looking more into projectors around next spring when we finally clear out all the junk in the basement and move it all into the newly-built garage. Right now i'm just reading up on the Epson PowerLite Home 10, an entry-level LCD projector.
http://www.epson.com/cgi-bin/Store/c...s&oid=36478884
Entry-level DLPs (eg. Infocus X1) are not an option as at least one person in my family is susceptible to rainbows.

[I 8 Piglet]

Native resolution means what it sounds like, it is the normal resolution of the projector. Maximum resolution is the maximum resolution that the projector can scale to fit within its native resolution.

I have an X1 and love it, but it was a close tie with the sanyo plv-z1 (price, black level, and bulb life sold me). If your set on LCD I would definatly look into that machine, or the z2 if you want to spend a little more, both projectors are native 16:9, which is really nice. Also boxlight makes a z1 clone, Paul.New has one. He posted about it in the Your Home Theater forum.

[Chromy]

All fixed pixel displays are constructed of a grid of individual picture elements. The 'naitive' resolution is the # of horizontal and vertical pixels that make up this grid. So 800x600 naitive resolution means that the image grid has 800 pixels across, and 600 high. The epson that you linked to has 854 across, and 480 up and down.

Chromy