Keep your projector up high and tilt it down toward the screen. The closer to the screen the better. You can mount your projector from a light bar, or house ceiling in some cases. You’ll need to use your projector’s ‘keystone’ setting to correct the image in this case.
Also, consider a short-throw projector or lens. It cuts down the distance that the projector has to be from your screen, while still displaying a large backdrop image. If you have room backstage or could ‘float’ a screen forward, try rear-projection, which means placing the projector at the back of the stage and projecting forward on your cyc or screen. Your screen will have to be a little transparent for this to work, like a normal cyc, but not so much that you see the projector light through it.
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