Yes, however you need to make sure that it is somewhere that people won't hit it with their heads. We have a 7'9" ceiling and we mounted a JVC RS45 projector (BIG projector) with about a 4" space between the ceiling and the top of the projector. This is above my second row of seats which is on a 12" riser, so it is like having a 6'9" ceiling. The key is that I put the projector above the seats themselves. Slight back so the you can stand up or sit down without any concern about hitting your head.
M60s, VP180, VP150, QS8s, SVS 20-39PCi, HTPC, JVC RS45, Onkyo TX-NR709, Shakers