I have to agree with the above. I have a Z2 projector and my viewing distance is about 10 feet from the screen which is 100" diagonal. There is no screen door effect until I move about two feet in front of the screen, then I see it. So I know what it is and and don't deny its existence.
However, I doubt anyone would be sitting two feet in front of a 100" screen and would be affected by this. We watch digital TV and DVD on this unit all the time. My biggest complaint isn't the projector, but the crappy signal from the cable company. HDTV on this projector is absolutely great!
Also no complaints from anyone else that has viewed the setup, including all the teenagers on the X-box when they sit on the floor at about 5 feet.
My advise would be to see both technologies in action (LCD and DLP), find out if you are affected by either quirks of technology (the screen door for LCD or rainbows for DLP). If not - just go for the best deal (with my z2 I got an extra bulb thrown in $300+ retail value)