Hey, that is where I started. Actually, I had the projector before the theater was done. Set it up on a coffee table facing a blank wall, using a portable DVD player and a boombox for sound.
Worked amazingly well.

Don't let the PC scare you off. The learning curve wasn't too steep. SNAP Stream just worked for me out of the box. No tweaking. Put the TV Tuner card in (or plug in the USB) Load the program, load the drivers that Snapsteam tested (available on Snapstream site) , and go. They offer a free trial if you happen to have a TV Card lying around, but in the real world, you want one of the (more expensive) MPEG encoding cards that SNAPSTREAM bundles with the software.

Linux/Myth TV does require more work (or a lot more if you don't already know linux) but has a little nicer interface and a few more bells and whistles. When I was looking, there were a few companies just building preconfigured Linux Boxes running Myth TV (or a customized version of it) , and I assume a web search would still turn them up...since Linux/Myth are free, they technically just sell the hardware...