Sounds like a supermarket tabloid headline... Many of you may recall a raging debate on this forum about a year ago regarding xga dlp machines and their suitability for HT use. A few folks got their hands on an NEC LT 100 and noticed some nasty banding/posterization artifacts. These artifacts manifest as purplish blobs that appeared in high contrast scenes, eg dark scenes with lit faces; the posterization would appear, for example, in shadows on the face. Instead of a smooth transition from light to dark, the area would take on a cartoonish quality of blotched/blocked purple.
I have been working with Thumper to modify my Plus UP 1100. After a round of mods, I noticed these posterization artifacts appearing in scenes where they never appeared before (I use an htpc/ Radeon LE with WinDVD 2.6.4). They also appeared on HDTV signals. As the "Masters" got late in the day, the posterization began appearing in the grass in the shadows. This was really distracting and I understand why folks condemned these units.
Thumper didn't panic and quickly concluded that the artifacts appear if the color wheel is not properly alligned. He intentionally misalligned color wheels on some units he had around and was able to replicate the artifacts, which he dubbed the Barney-effect (damn purple @#$%). I crossed my fingers and sent the unit back to Thumper to have the color wheel alligned. The 1100 came back on Thursday and I have been through a dozen titles.... not a SINGLE instance cam now be detected. It may be psychological, but other image qualities also seemed to improve.
Bottom line: banding/posterization should not scare you away from xga dlp; if you got, it can be cured. Coupled with Thumper's other mods, you may have the best single-chip dlp image available. A Plus 1100+Thumper's mods+htpc=one of the best values in dlp image you can get.