If you can reduce the amount of light in the room, especially light behind you, and if you can watch the tv basically straight on you could get away with a traditional projection tv. those go mostly 1000 - 2000 USD. The reasons for those requirements is that with traditional (crt) projos you lose a ton of light at very slim angles and you can tend to get a lot of glare.
Ifyou are going to be looking at the television from all over the room and or there is going to be a lot of natural light around you might consider one of the newer forms of projection television, dlp (digital light processing) projection or lcd (liquid crystal display) projection. they are also much slimmer than crt projos so they may help solve space problems as well. they tend to be around 16 to 24 inches or so. they start right around 2000 usd and go up to about 4000 usd (roughly).
You can also look at plasma or a large lcd panel (vs lcd projection) but they will cost you a lot more. i haven't physically seen any lcd direct view (panel) tvs that are larger than a 45'' sharp that we have at best buy, but 42'' and 50'' plasmas are very easy to find. they oftentimes have removable speakers or smaller speakers, which can be useful if you are trying to get the largest screen size for the space.
Theres a lot of stuff out there as it seems like is often the case with consumer products these days, so i would definitely advise you to do your research when you start to get down to it. cnet.com has some good information and it can be fun to flip through a "sound and vision" magazine just to get an idea of what's out there. hope this wasn't a little overwhelming to anyone, but i do enjoy talking about it. it looks like a lot of text in this small little box that i'm typing in but i'm sure that it will end up being a semi-normal sized post. in any case finding something that will fit that space should be no problem with a projection, although panel tvs will work as well.
Pete
by the way, if anyone hasn't check out cnet.com, it is a very valuable resource regarding any consumer electronics purchase. occasionally they seem a little nitpicky, but i wouldn't have it any other way.