Shop around and youll find the AE900 available for under 1k
Being a AE700 owner i can vouch that the AE900 will be pretty decent, great for games, but imo still not 100% satisifying for movies but depends how critical you are.
As for this 1024x768 talk, actually their is very little loss in quality from a 720p source, someone mentioned that 1024x768 is 4:3 well it is but its not when the pixels involved are rectangular. You can get 16:9 1024x768 PJs.
I believe the AE500 was 1024x768 res PJ and many of the current/recent Plasma Tvs (eg Panasonic / Pioneer) in the 42" sizes are still 1024x768 displays do they look bad? The answer is no but for the price point the AE900 will be amongst the favourites and gives a very big screen in a small space, moreso than some others. Anyways see AV Forums for all the info youd need regarding other models.
PS do get a screen it helps a lot, use a DRH myself, well made a difference to me.