I have read and researched on this problem and the majority of post i have read other people have suggested that it might be the dmd board or possibly the light engine.
If this is the problem which im not sure if it is, then which would it be? I have searched for these parts and it looks like some of the dmd boards do not come with the dlp chip (i would think that this may be the part that would have actually gone bad - Also is this the chip that contains the mirrors?)
Any insight would be greatly appreciated, here is a picture of my problem.

And a link just incase that pic didnt work
http://img203.imageshack.us/img203/2179/pict0016h.jpg