The colors are separated. Images are blurry and

Try adjusting the convergence. If it won't move see below- (or hitting Magic Focus for some Hitachi’s)
This sounds like convergence output IC problem. convergence board would have to be removed - remove and replace 2 STK IC's and check the surrounding resistors. Shops usually charge between $200-$400 Be sure to vote/rate me if this helped Thanks!
See link for more detail
http://www.ehow.com/how_4575598_yourself-projection-tv-repair-convergence.html