Focus adjustment (ring on the PJ) or sharpness control in the PJ menu?
If the focus ring, you should only focus after about 30-60 minutes of warm up. It's focus changes a little from cold to hot (common with many PJ's). Focusing when warmed up allows you to watch most of the movie in the sharpest focus.
If done cold then it will go a little outta focus after warmed up.
On test patterns it appears that #1 is better (less ringing), or even #0, but on video content and from a seated position I prefer #2, it at least makes it appear sharper and I can't see any ringing from my seated position.
S/W Version 1.00HC3800
S/W Version (SUB) 1.00 SCU7
S/W Version (DDP) 0.13 DDP1
Do i need to worry?
I am not a projector expert but I bought this from a local seller with OEM brand new bulb for $400. I haven't seen any problems so far except when going to full screen mode from youtube or any other player, it flicks for one sec which doesn't bother me at all. BUt again, I am not an expert, this is the first projector that I have ever had.