It looks like 2-2.5 pixels off, but it's hard to tell in that picture.
Did you put the projector at closest throw, and make sure it was perfectly aligned perpendicularly to the screen (sometimes shooting onto a white wall temporarily is a good test).
Depends if you can see it from farther back and how well text focuses in general, and you own preferences as to if you want to risk an RMA or not.
You guys definitely need to post better pics, but you should be able to tell convergence yourself just by looking at it.
Here to clarify some of this, I am posting my convergence on the Sanyo so you can see what 1.25 pixels off looks like at shortest throw.http://img200.imageshack.us/img200/7540/cimg0488o.jpg
Here is how 1.25 pixels affects the edge / outlining of different colors (not very much):http://img830.imageshack.us/img830/4033/cimg0501.jpg
Notice on some color text you can't even see it.
Obviously 1.25 pixels off is invisible from even more than 2-4 feet away, depending what color it is next to, from 5+ feet it doesnt matter at all, it's completely invisible.
Then in another image where it appears to be off over 2 pixels, but it's from using lens shift at mid-throw, so you have to be careful how you test it.http://img98.imageshack.us/img98/7988/cimg0416k.jpg
You can tell in the above image that there is no way for us to tell how far off it is, because of the blooming. You need to get a clear pic like the first one if you want us to know, but even closer up.
Here is another image of convergence off 1.25 pixels:http://img833.imageshack.us/img833/1133/cimg0481m.jpg
Look at the attached thumbnail, see all the blue highlighting, that's simply from the PJ not being perfectly aligned to the screen as well as lens shift.
Someone could be posting a pic of their CONVERGENCE, we tell them it's off 2.5 pixels, and really it's perfect, you gotta be SUPER SUPER careful.