That vertical bright lines remind me of ghost images when I hooked my PC monitor to a KVM switch and the switch to my PC. If I set the PC's display to a higher resolution, the ghost lines will show up. Usually it's caused by the KVM switch.
I will try to lower the PC resolution to see if the ghost lines go aways.
That's called excessive edge enhancement (a kind of ghosting). Like Joe_M said, set your sharpness to zero. Also make sure you have good cables and your video card, or software, is not adding extra sharpness to the image. The lines could be due to signal noise being introduced from the laptop (or its video drive is not capable of providing a clean 1280 x 720 image).
You also may want to get a VGA to RGBHV cable instead of the VGA to RGB (that uses the component 2, analog, interface). The VGA to RGBHV is a digital signal (use the GBR button on the remote). That's what I'm using on my MT700 (the PE7700's brother) from my desktop computer -- no ghosting, etc. I haven't tried it with my laptop.
This might not be your problem at all but when I used rgb connection to my pc I had a hard time getting a good focus on the picture. I have my pc desktop set to 720p. The projector was in widescreen mode. Then I flipped to real mode on the projector and the image resized ever so slightly and was completely sharp.
I connected my NB to the BenQ PE7700 through the RGB-HD by using the cable coming with the projector. I also tried to turn down the sharpness(to negative) but the image becomes fuzzy and less impressive and manually focus has no use to sharp the image.
I guess the problem is in my notebook as you said. I will try a desktop with a high-end video card to see if it's still a problem.
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