ok, here is what you do. hook up a laptop or pc to the 8350. start up windows 7.
Then put up some white or colored screen saver or blank page.
Don't pause anything .
You say it happens all the time. You can also have webpage up, maybe google news or something like that. It's a static page. We can try to look for what you are talking about.
or even a test pattern. look for one.
It could be cable noise. Try a different hdmi cable or vga cable. We are trouble-shooting so trying different things to narrow it down.
Also, you should put at thread title: EPSON 8350 Issue with projector, please help?
You have a very popular projector, that should get tons of people helping you out. But "issue with projector" sounds very vague.
One other suggestion, put that exact picture "freeze framed on 42 inch or bigger HDTV and see if you see the wavy lines. It could be in pause, slight shake is normal with that image or video. That would be way to test if it's the movie encoding or just your projector. Sometimes I thought I noticed something wrong with my projector. Then put same movie on hdtv and it did the same thing.
It could be something wrong with projector too, and it's only one week old. But you are doing the right thing to trouble shoot it and asking others if they notice the same thing on "movie that is paused after 30 seconds".