I've searched to no avail for help with this problem. I now have a thin blue line running across the bottom of my screen.

All inputs affected? Post some screenshots

All inputs affected? Post some screenshots

I don't know how to post screen shots but the blue hazy line (3") is pretty faint. It runs along the bottom of the screen. I have tried all inputs and adjusted the settings many times. I changed from component video to HDMI with no relief. The TV is about 40 months old. I misspoke about the model number (my wife checked it) It is actually the KDF-50WE655. I know this display in not exactly a hot topic anymore so I thank you for your response. I doubt I have a bulb situation and most likely a Optical block or light engine (are they the same?). If so is there any recorse on my part with Sony. I bought it at Sears but no extended warranty.

Its an optical block issue and it will get worse. i also have the KDF-55WF655 I bought new in Jan 2005. it has the blue blob/blue dot optical block issue, and has for about a year. Sony had extended the warranty to Dec 08, but will now stonewall you with 2 lame offers. this is a know issue with what seems to be all of their rear projection models. google 'sony optical block' and you get all kinds of consumer complaints, and class action lawsuits. this is a good one:

http://getsatisfaction.com/sony/topics/sony_grand_wega_optical_block_issue