Will your room be well light-controlled? From what I've heard, the 8500UB has significantly better black levels, but if your room has any ambient light that advantage pretty much disappears. I purchased the 8350 when it was first released and have no regrets. IMHO it produces an amazing image, although it's my first projector so I don't have much to compare it to.
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My room is about 14 feet x 11 feet and I sit approximately 12 feet from my 92" screen (which drops down in front of my plasma also) and I find it to be the perfect size. 106" from 15 feet away sounds about right to me.
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