No, that's not what I'm seeing. It goes beyond the pixel grid. And I see none of it on my new front projection system which is also a single chip dlp (HD2+). That's why I bought it. I'm convinced it's got more to do with the optical qualities in the rear projection screen material and diffusion lenses (perhaps in combination with the pixel grid on the higher resolution digital projectors). I think there is some diffraction taking place on a very small scale because sometimes these sparkly textures have a rainbow quality to them - like the sunshine on the snow that I mentioned. When I first noticed this I wondered if it was somehow related to the color wheel rainbow effect associated with single chip dlp's but since then I see the same/similar problems with lcd and lcos too, so it's probably not.