Depending on how big your room is and how much attendance you're expecting, you might want to check with your local rent-a-center type place. When we did a movie last year (student assembly only), we rented a big screen tv. They did delivery/pick up, and it was only about $75 to rent it for a day. HTH!
These days, more and more professional folks (especially those in sales jobs) have easy access to digital projectors at work. Maybe ask around.
These can be connected to a VCR/DVD player or even to a laptop with a DVD. They shoot great pictures up to pretty large sizes.
Failing that, there's also a discount rental option included in the Family Movie Night kit. You can order the free planning kit at www.schoolfamilynights.com. Kit also includes all the info you need about public performancelicenses.
I'd say 9 groups out of 10 find or borrow a projector for their Movie Nights.