a large screen surrounded by smaller screens. and you say you can connect the large screen to a computer, and the smaller screens via a cd output cord?
Flat monitors and box CPUs are very low cost. In fact, the computers needed to play a video could be obtained for free in many cases (i.e. windows98 machines with no other use). Use standard cd players to connect to smaller monitors with standard video in (i.e. the yellow cable with RCA connection).
could i do it all with splitters and never mind projection?
Yes, connect the CD player output to a splitter and send each output to a screen in each section. So if you had 7 players, you could run 21 screen in three sections plus the 3 run by computers. If you have larger flat screens with video input, you may be able to run with just 8 cd players and no computers.