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I dont know of a good way to tell people bad news. The problem with the blue dots is expensive. A part called the optical block is failing. In general, the optical block takes the red green and blue pictures from the little lcd screens and puts everything togther perfectly. This requires several mirrors, filters, lcds, and parts that I dont even know the names of.
Buying a brand new optical block is a 1000 to 3000 dollar thing. To have the block rebuilt is about 350 dollars.
Sony has been trying to make the customers who purchased these tv's happy by providing extended warrentys, or giving them a special deal on a similar sized new LCD tv.
I would try to complain to sony and see what you can get accomplished. If you do opt to repair the optical block the odds are that it will happen again in a few years. Ebay and the chicago craigs list are where I have seen the guys who are capable of rebuilding those blocks.
This is a common failure in Sony Projection LCDs that is known as an optical block problem. The optical block repair is very costly (about $1000-1500 depending on the shop) which is about the cost of a brand new comparable TV as current prices. This issue usually occurs in the TV about 1-4 years after purchase of the TV depending on usage.
Sony has been slowly extending the warranties on certain models but the model you have listed above was not one of the ones that had the warranty extended. I would first call Sony to see if they will at least pay for part of the repair. If not and you still would like to get the TV repaired, you could replace it yourself and save a couple hundred bucks in labor but it is going to be very time consuming because you need to take the whole TV apart to get to the optical block.
If you decide to replace it yourself, the link below has detailed pictures and a guide for optical block replacement along with a overview of the issue you are having with the TV.
Hey joseph, actually replacing the optical Block is not necessary at all, all you need to do is get into the "Service Mode" of the Tv and change a few setting around, did it a few weeks ago and now my TV looks perfect, no reason to waster $1200 as sony is trying to get over on all us consumers.