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I've had the Z5 for about a year and a half now. I honestly dont think I could be any happier. I've got my PS3 going HDMI to the Z5 and 5.1 audio through the PS3's optical out and my little theater setup blows people away.
Actually since visiting my theater, FOUR of my friends have either gotten projector setups or are in the process - my Z5 has made me quite the trendsetter.
One thing should be noted. When the PS3 is sending a 1080p signal to a 720p unit (like the Z5), it actually scales the signal down to 480p - or so it says in the menu when you look at the current signal being recieved while a blu-ray is playing. However, the picture is visibly richer AND sharper to the naked eye despite the "scale down". I found this strange but im not making a stink since the picture really does look better than standard DVD.
I picked up a bargain screen - $200 from circuit city - 100" diagonal - and playing games like Call of Duty 4, Assassin's Creed or any other well rendered game is extremely immersive. Just a blast.
I would HIGHLY recommend this projector to anyone.... ANYONE. If youre the kind that doesnt see much difference between 720 and 1080 signals, this would be your cheaper alternative for a great, no, EXCELLENT theater/gaming experience..
BUY IT.