The picture is distorted as well as the color...

Projection sets have two very common problems.

The first common problem is convergence


These sets need to have all three colors - RED - BLUE - GREEN - lined up correctly on the screen in order for the picture to look normal. This is called convergence.

When its out of alignment the video will look 3-D, wavy, distorted, etc. Most of the time you just need to adjust your convergence in the menu. If you cannot adjust it in the menu - then your convergence is broken and needs to be repaired. Convergence problems are very common on all Projection TV sets including Sony, Samsung,JVC,Philip Magnavox,Panasonic,Akai,Pioneer, Hitachi,Mitsubishi,Zenith and others.
You can get more information and a DIY convergenece repair kit with instructions from the link below.

Here are some of the most common problems with these sets...

*Screen Looks 3-D
*Colors wont align
*Screen may look distorted or warped
*No Audio/Video - TV Shuts down - May also make a constant chirping sound

Problem #2 - Another common problem is dull or washed out video.

Your set may have one or more of the following symptoms....

*Dull looking picture
*White looking picture
*Halos around objects
*Red/Orange looking picture

You can see some more examples and find a fix using this link on Fixya http://www.fixya.com/support/r2861467-solution_video_looking_whiteish_dull