Big Ass TV

Home Theater Question: So I want to set up a digital projector on the wall of my apartment and I have one remaining question: XGA or SVGA? does it make a difference? What does it mean for the image that I'm going to get? Is it worth the extra 2-3 hundred bucks? I'm just going to be using this set-up to watch movies and play x-box so I'm not too anal but I want it to look good. Specifically, the model I'm looking at is:

http://www.dell.com/content/products/productdetails.aspx/proj_1200mp?c=us&cs=19&l=en&s=dhs

also, if anyone has anytips for setting up a home theatre I'd appreciate it

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