Well, my friends $1,000 Infocus X1 has an excellent picture, especially considering it's price. Noone that has viewed movies at his house sees the rainbow effect so no worries there.
I have been to the local CineMark many times and before you walk in, the huge banner to the 2 bigger theatres states that it's equipped with a DLP projector. It looked absolutely fantastic.
I am selling my Pioneer set in the spring and picking up the X1, just to get used to DLP. Then a little while after, I plan on getting a Runco DLP projector, and Im sure by then the DLP 2 will have been upgraded.
By the way, the X1 has the original DLP chip, and I still saw no rainbow effects. It's put onto a 92" Da-Lite High Contrast screen, and looks amazing. Xbox looks great on it too

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Play it LoUd!!