First, sorry to hear about that!
This is a failure of the DLP chip. The micro-mirrors on the DLP chip itself are getting stuck. This happens on older DLP chips, and thankfully, Texas Instruments is covering the cost of parts for this issue for up to 5 years from the manufacturing date. Customer will be responsible for labor charges and shipping to the repair facility.
Just give us a call at 866.600.2367 regardless of the age of your projector, and we would be more than happy to get that repaired for you as quickly as possible.