It doesn't have to be 120", i'm using a projector ar around 85" in my beedroom (albiet I havn't lived with my parent in many years so even if they thouhgt it was silly it wouldn't matter).
I strongly suggest the projector, you shant regret it.
I'll got through some of the stats you posted in the OP.
Refresh Rate . . . . . . . . . . . . . . . . . . . . . . . . 60 Hz (is that good)
This is fine for gaming and due to the 3:2 pulldown mode is quite good for movies (which are usually shot at 23.96 frames per second). More on this below.
Reverse 3:2 Pull Down (Film Mode). . . . Yes
Basically it means it shows as intende at the theatres (with the correct frame rate, its more complicated then this but a quick search will find you a lot of information alot more detailed then I can provide.
Display Aspect Ratio . . . . . . . . . . . . . . . . 16x9 (is that what you see?)
This is the Aspect Ratio, quite simply for ever 16cm wide it'll be 9cm tall. All PS3 games are 16:9, however must films are wider (2:35:1) and therfore most movies will have black bars on the top and bottom.
Panel Contrast Ratio . . . . . . . . . . . . . . . . . 5000:1 (What in the world?)
Ignore this, just note contrast ratio refers to how many times the lighest color is to the darkest color. Contrast numbers are very misleading though and are as representative to the image in life is, as porn is to love.
Viewing Angle Horizontal/Vertical . . . . 176/176
Fairly obvious the recommend maximum angles recommended to view at.
Video Processing - Marketing . . . . . . . . . EN-V
Not shure, generally video processing is best left off when included on a tv imo.
Bit Depth . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 bit
Has to do with the number of colours available, 10 bit is fine, though 12 bit is better etc...
Adjustable Color Temperature . . . . . . . . Yes
Worry about this later, just make sure its there dor calibrating at a later date.
Dynamic Contrast Ratio . . . . . . . . . . . . . . 25000:1
See above.
Comb Filter . . . . . . . . . . . . . . . . . . . . . . . . . 3D Y/C
Dunno