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It's all a matter of how good you want it. It will work fine at 18 ft (or 21.8ft) but NOT as fine as at 12 ft simply because the lumen output is not of the flamethrower variety. Will it be perfectly acceptable to you? - It depends on how good the light control is and how good you want the picture and to some extent how good your source is too.
Like others have said, if you can move it closer, that would be more desireable. But is not an absolute must either.

As far as how low to hang it, the Sanyo has a nice adjustment for keystoning (I think that's the term) Ideal would be as straight a shot as possible but in the case of the Sanyo it is not nearly as critical.

As far as screen height, I vaguely remember reading the middle of the screen should be near eye level but that just does not sound right. I'll have to search. My ceiling is only 7ft in my basement so I was forced to set mie at the top of wall.
 
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