Three chip system??????

When looking at LCD projectors, the sales types kept telling me about the very complex units having three chips onboard. Is this in reference to the projector or the reciever???? Mayhaps someone can tell me to what are they referring?

By the way, I've only had a short time to start perusing these boards, but for the record, I am intent on making my own home theatre using a max 7'x10' screenform, and the biggest, sharpest LCD unit I can build. The room to be used is totally blacked out, & is 30 feet deep to the 'cheap seats'. It will be specifically for movies such as Star Wars, Saving Private Ryan, ect.....any hints and/or suggestions would be greatly appreciated. My monetary limit for the projector/screen project is $1,500.00.

Wow that is a lot of money to spend on a projector. The three chip is really three different lcd panels inside the lcd projector which makes it look better. For less then 1,000 you should be able to buy a good used DLP or LCD projector. Then you could buy a widescreen projection screen 16:9 ratio new for several hundred. Or you could build a projector yourself but if I had the money personally I wouldn't.
16:9 has nothing to do with the diagnal size of image. What it does by aspect ratio is chop the top and bottem while lenghtening the image. To make the image larger just move the projector back more from screen is all. Or use higher power objective lens or two of them together. So ratio doesnt equal size but format of picture only. A wide screen format without moving the projector is the same lenght just shorter in height. Like a tv when in wide screen with the bars at top and bottem Its no bigger at all. Just dif format. Hope that helped.
DANG!!!!! Mislead again! Thanks for the clarification. So....and bear with me here, I'm just a dumb, old grunt....for a viewing audience at 15' distance in a total blackout room, with a screen area of 14'x8' what would work best? Dual projectors with one chip each, or dual chips in one projector, or multi-chip AND dual lens in one projector? Thanks for your patience!
Screen Size

What you need to do is look at the projector in question. And see what it says the max image size is. Then what the max throw distance is. This is what distance it needs to be to get that size screen. So if it says (example only) 10' image max, 30' max throw distance that means at 30' it will be 10'.

"Dual projectors with one chip each, or dual chips in one projector, or multi-chip AND dual lens in one projector?"

First if your talking comercial (boughten) projectors it will have a triplet lens. Three glued together for the most correct image colors. This kills the rainbow effect of a single lens system. The older ones I think only had two lenses.
The amount of chips isnt the amount of panels from my understanding. 3 lcd panels can run off of one IC controler chip. All comercial lcd projectors are 3 screens. One for blue, one for green, one for red. This gives you 3 times the light that would pass a single panel. The poly lcd's give the most light output with the smallest bulb. If you want top end you want either poly 3 lcd projector with gives higher contrast and lumens over reg. 3 lcd or DLP and go for broke. These used fit your price range. As far as one chip, dual, or multi I think you are refering to the controler chips on the lcd controler panel. These have to do with the quality of control, type of lcd and how it functions. Also extra features too. Dont bother looking into that. All you need to know is. LCD tech (poly or whatnot) contrast, throw distnace, max image size, lumens, replacement bulb costs and price. Armed with this info. you already know what is the better lcd. Keep track of the ones you find. Right down the data and cross reference. then you will find a good deal on a good projector and KNOW you got the best projector for your cash. Hope that helped some.