We present a projection system that is capable of two-dimensional and three-dimensional image display. A novel projection architecture is discussed that can simultaneously generate two linear polarized full-color images with orthogonal states of polarization using only one optical system. Both images are modulated by using two high-resolution liquid crystal on silicon panels that are illuminated with high-power light emitting diodes. The optical core and the illumination system are simulated, characterized, and optimized with nonsequential ray tracing software. A proof-of-concept demonstrator of the entire projection system is built and characterized. Important component specifications are discussed to improve the system performance.