Here is a picture of my backyard home theater. It features a 130″ projector screen being fed by an NEC NP901W paired to an XBOX 360 with Wireless N. We usually stream movies in HD via Netflix, or via Windows Media Center. Using Windows Media Center we can also watch live TV wirelessly on the xbox. You can see the guys hanging around the fire pit enjoying a cold beverage. The entire setup is portable and can be viewed from the hot tub or back porch also.
That about sums it up. The folks that come to a movie for the first time just stand there with their jaw in the grass….but when the show actually starts….they are even more amazed.