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The LXI or Sears brand used philips TV's. These sets are known for bad coolant fluid. In between the picture tube and their lenses is a layer of clear coolant. Over time the coolant breaks down and causes the picture to become blurry. This can be a complicated repair involving removal of the picture tubes and lenses. Have a repair shop check it for you. Thanks for using fixya.
The convergence ICs and resistors need replacement. The DPTV305-345 convergence repair kit works for most Phillips rear projection Tvs. The kit contains the two ICs 12 resistors and the CD with detailed instructions http://www.tvrepairworld.com/
You need to clean the projector lens on the optical engine using a soft cotton or, better yet, a chamois cloth. Also clean the mirror mounted inside the rear cabinet and also the front and rear of the screen itself. If picture is still blurred then your the optical engine is most probably defective.