DLP vs LCD Projectors

I'm using 4 DLP projectors (Dell 5100MP) for my tabletop display system and so far they are giving me a lot of troubles. First, it produces rainbow artifacts when the display is seen through a camera. Now, it produces significant flickering when projecting through an optical shutter. The LCD projector does not produce such artifacts. It seems like we should have gone for the LCD projectors at the very beginning. I think by understanding better how each of them works will allow us to make better decisions in the future and also for the current research.

LCD Projector
LCD (liquid crystal display) projectors contain three separate LCD glass panels, one each for the red, green, and blue components of the video signal. Each LCD panel contains thousands (or millions) of liquid crystals that can be aligned in either open, closed, or partially closed positions to allow light to pass through. The alignment is controlled by the electric field between the two transparent electrodes on the two sides of the liquid crystal molecules. The projector typically sends light through special dichroic filter / reflector assemblies called "dichroic mirror" that separates light to the three LCD panels. Wikipedia has a nice explanation and a diagram on how it works.

DLP Projector
DLP (Digital Light Processing) projectors use a DLP chip with reflective surface made up of millions of tiny mirrors. To define color, a color wheel is used which contains a red, green and blue filter. This wheel spins in the light path between the lamp and the DLP chip and alternates the color of the light hitting the chip. The mirrors tilt away form or into the lens path based upon how much each color is required for each pixel. In the most expensive DLP projectors, there are three separate DLP chips, one each for the red, green and blue channels. They are usually over $10,000 and do not use a color wheel.

Rainbow Artifacts and Flickering
The wheel based DLP projectors produce rainbow artifacts because of the sequential color updating from the wheel. As the color wheel spins, the image on the screen is either red, green or blue at any given instant in time. Since LCD projectors and 3-chip DLP projectors always deliver a constant red, green, and blue image simultaneously, they do not create rainbow artifacts.

Under a switching optical shutter, flickering occurs with the 1-chip DLP projector because the period of the rotating wheel does not match with the period of the optical shutter.

Source: http://www.projectorcentral.com/lcd_dlp_comparison.htm