This is what the AE2000 does to text on my screen. This was taken from right next to my 92" screen with a digicam that admittedly is not the best in total darkness without a flash but it should illustrate the issue. What you're looking at here is text from a video file on my PS3:
As you can see, there's a faint halo along the topside of the text, as if the projector were one step out of focus. Unfortunately, it is actually in perfect focus. I believe it is smoothscreen that causes this issue. I can adjust the focus so this halo is below the text instead of above but even going to the finest steps I can't get it more in focus than this. When I'm sitting 10' back from the screen it's less of an issue but it's still a step away from producing as great an image as it could and there's not a damn thing I can do about it.
Smoothscreen seems to produce (optically) what is in effect a 1/2 pixel blur across the entire screen.
Here's another example of this effect on text that's from the title cards of the anime series Freedom:
And here's a picture of the entire screen to show how large this text actually is:
The curvature of the screen is from the lens of my digicam, not from the projector being setup incorrectly.