LCD flat panel is like the flat screen on a desk top or laptop computer. An LCD array the size of the entire screen generates the image. It is direct view.

The rear projection LCD (also called DLP by Texas Instruments) uses a small LCD panel which is illuminated by a high power lamp. This image is then expanded and projected onto a screen, which you view.

LCD direct view has the advantage of being flat and compact, and uses relatively lower power.

The LCD projection system provides a much large screen (diagonal) for the $$ bu requires a larger (deeper) cabinet. LCD projection also have an expensive light source which must be replaced every two years or so ($200 to $300).

LCD is not the same as DLP. DLP technolgy is well explained on www.dlp.com in a few words it uses a proprietary chip that has thousands of mirrors that can be moved to reflect or not a light source filtered through a spinning color wheel.

Also both direct view and projection LCD's have a light source that can fail after so many thousand hours of usage. You will want to investigate particular manufacturers and models for estimates of lifespans and costs to replace. Generally speaking the light source will last 4,000 plus hours but will get noticeably dimmer over its lifetime. Also some are designed with consumer replacement in mind while others would require a trained techinician. Research prior to purchase is recommended to avoid a suprise down the road.

There are several other technologies out there and what it comes down to is personal choice I dont believe that one particular technolgy is superior to another. Other technologies to consider, plasma, CRT, or even front vs rear projection. Size, cost, placement are all factors that will probably lead you to a certain direction.

For example if you have a large basement space with light control and want the largest picture possible front projection would probably make the most sense.