Another member clued me in via pm.
A search revealed this thread on glowies:
Glowies linkThis pic was posted there which shows the exact problem I see on mine. I always thought glowies was something else.
I can't confirm the bleeding is bad like that around the text but the foggy pattern is very similar to what I posted above and I had never seen that picture before.
Click to view attachmentFor those who asked or wondered, I am using a straight box, 15" lcd, split design standard LL lenses and an older fat 400 mh (4000 - 4200K) with coil ballast. No reflector with this bulb although I have bought and IKEA stainless steel bowl to try later.
I am also testing all kinds of bulbs ie.. 300 watt incandescent, various tube halogen worklights and a 26 watt cfl bulb. The cfl bulb is dimmer of course but no fog and beautiful contrast. As a side note I am looking for a brighter cfl locally and also one with a a higher kelvin rating ie... 5000 to 6500. Although dark at only 1600 lumens, I like the basic look on my 66" diag image but that's another story.
I bought the pj as is for a great price from another member knowing full well that it needed tweaking. I just wasn't sure what it needed. At first it is exciting just to see such a good projection coming from a home made box that it's hard to find fault. But of course after that the experimenter and tinkerer is awakened.
I think it may be reflected light inside the box. The lcd is not tight to the wooden frame so the edges of the panel are showing. The sled is not tight to the side of the box. I have a small piece of wood between the rear fresnel and the lcd to block the extra light but it's not perfect, when I look through the the triplet I can see a thin sliver of light all the way through the bottom edge. The top of the fresnels are held in plastic page/binder type holders but there is a thin line of light hitting the screen. The metal LCD controller is not covered and could be causing some reflected light also. The effect may not be noticeable with the cfl because the image is so much darker.
An afterthought:
The only inconsistency I see is that the pattern I see doesn't seem to match the light leakage in the box. The top and bottom edges of the fog might be explainable this way but the thicker broad area running though the center is harder to understand. I could believe a fresnel diffusion issue because that is where the maximum light would hit the center and spread outwards from there towards the edges. Is there anything in the design of fresnels that would cause a greater spread towards the wide side ie left to right along the center of the fresnel?