Funky,
I've demo'd a wide range of projectors recently including: HD33, Epson TW6000, TW9000, JVC X-3/X-30 & a couple of sonys.
The best for "average" home use was, without a doubt the TW9000. However, the TW6000 did a sterling job and is nearly half the price of the 9000, and within your budget I would suggest. I've just installed a 6000 for a large "home cinema" type project in a non-light controlled room with it set up to nearly its maximum recommended screen size, and it's pretty mega to be honest. I was sceptical in this project about going for the 6000 rather than the 9000 due to the amount of ambient light, but the budget was fixed and the 9000 out of reach. The 6000 has exceeded my expectations really rather well, so I'm pleased to be proved wrong!
The HD33 I found to suffer from "the DLP effect" quite badly, but I know not everyone is affected by that, so I suggest demoing. However, bear in mind you may not be the only person who is going to watch it, and if you can see rainbowing it gets really very irritating quite quickly.
Regards,
J