Hi Karen,
I'm going to disagree with Adam. I think projections can be very effective, economical, and mystical--provided you hire a qualified projections designer. Many Broadway and Broadway Bound shows have recently used projections--9 TO 5, SPIDERMAN, BONNIE & CLYDE, SUNDAY IN THE PARK to name a few. While sometimes they are still images, often they incorporate movement/animation to indicate time and life. If you don't want to hire someone, you may be able to find some great images online--specifically with free websites like FLICKR or pay sites like SHUTTERSTOCK.com.
Remember you'll probably need space/equipment to do rear projections if you don't want the background on the actors. Alternatively, you could have a unit set and use side projections to delineate setting.
Hope this helps. If you have a decent budget, my friend is the projection designer for BONNIE & CLYDE & WORKING. Not sure if he'd be interested or available, but if you post an ad on this site--you may find someone for less!
Break legs!
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