The major technologies used in projectors are DLP and LCD. These are the technologies that are actually used to display the image, and then a bulb projects the image onto a screen using lenses to enlarge and focus it. LCD can be imagined like a small LCD inside the projector, which is then backlight and projected. DLP on the other hand uses a different technology, mainly a set of mirrors inside a chip that reflect light from the semi-conductor. More simplistic (and cheaper) systems use a colourwheel to add colour to this image (or a set of LEDs). The latest high end systems use a refractive prism that uses three colour chips to produce a defined colour separately.
The advantages of DLP include the fact that often a higher contrast is possible when compared to LCD systems (so deeper blacks), lower weight, not limited in size by how they work (whereas with LCD the maxiumum resolution depends on the size of the chip and because of the way it works the higher resolutions may be more expensive to achieve), better colour performance, etc. If you're expecting this to keep for quite a few years, then one of the disadvantages include the shelf-life of the bulb projecting the image. These can be quite costly to replace and may not last for more than 2 or 3 years, or shorter depending on how much you use it (because the image will 'fade' the bulb will no longer output the same power than as at the start), so you might end up spending a hefty bit of money on that alone, but that is a common disadvantage with most projectors these days, a necessary evil because LED powered projectors are still relatively new.
Disadvantages of LCD include possible dead pixels which will be pretty visible when projected onto a surface, and may not be repaired by the manufacturer (each have their own policy regarding dead pixels). The contrast ratio is also not as good as with DLPs, however because of the light source in projectors (the bulb) this may not be that noticeable.
XGA, VGA, WXGA, WUXGA, SXGA, etc, are all terms used to describe the resolution. XGA is 1024 x 768, these days a standard resolution for lower end plasma TVs. If you're looking for high def, the common values are 1280 x 720 for 720p and for 1080p (what is often denoted 'full HD') it is 1920 x 1080. Obviously these resolutions in a projector are possible, but they will be expensive (in the multi-thousand dollar range for a good reliable system). If you're specifically looking for HD, you're better off buying a LCD TV, or a plasma, etc, which can get into the large screen size these days and is a way cheaper solution than a projector. You can look up these terms and related information on wikipedia to familiarise yourself.
To be honest, these days, if you're going to be plunking down money for a decent projector you just need to make sure you're not getting ripped off (and I'd recommend extended warranties for such devices, especially if they cover bulb replacements), and that you know what to look for. Look for reviews on things like CNET, Gizmodo, GDGT, etc, and see what buyers have to say about it. Look at the input options available that you can connect your devices, the power output of the bulb (measured in lumens), contrast ratio and resolution. Don't be fooled for a cheap projector that's a few hundred dollars when all it does is SVGA (800 x 600). These days that's pretty poor and won't look good with consoles or computers. It would be fine for a presentation or business meetings, but for any serious video or gaming, you'd be looking for something at least XGA resolution. After that things get pricey.
Hope all that made sense.
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