This is a manufacturer defect in the light engine. There is a class action lawsuit that was settled to extend the warranty and cover this repair for FREE. If you call LG with your model and serial number, they should direct you to the extended warranty department and set up the free repair. Details on the settlement are available at http://rearprojectiontvsettlement.com/index.htm.
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I believe you need the Optical Block replaced. It is not a simple fix and if it is out of warranty, it will be a expensive one. I would call LG at 1800-243-0000
and see if they could help with the repairs and also to get you in touch with a local repair facility.
Hope this helps,
Blue lcd is burnt up.. Normally happens due to excess heat from poor ventilation or not changing the lamp at the required time.. Allways happens on the blue as blue light is the hottest wave length, and as the lamp burns, it shifts to that side. Nothing you can do but replace the lcd itself. From the image shown, looks like the unit uses sony lcds.. Sonys are well known for there burns.. No quick fix on this one.