I wanted to see just how realistic Cycles is by trying to do what I learned in school about optics.
This is simply a plane with emission material with color set to an image texture, a lens with glass material with IOR at 1.5, and a big plane with white, diffuse material for a projection screen.
I had trouble making a lens that would work well. I ended up using the side of a UV sphere that I put a mirror modifier on, which makes for an ugly looking, but pretty well working lens.
I’m not sure these are the exact distances between the objects that would produce the sharpest possible projection, but it’s somewhere very close. You see, in Cycles, just as in real life, the focal length of the lens and the distances between the objects have to be just right in relationship to each other in order to create a sharp projection.
I thought that might be the case. I did browse to another image and assign that to the plane material.
I even flipped the normals of the plane which are pointing the wrong way.
I still get a black scene using 2.6.1 r42722 CPU acceleration (no GPU detected).