The LCD panel is burned and very discolored. This is a very common failure in these cheap projectors. It can either be the LCD (very unlucky) or the polarizer filter (lucky), but they tend to cook the replacement part as well a lot of the time without a fan upgrade: Brown smudge/spot on the projection image about 1/6th of total picture. This is where a big issue comes from in repairing this...
Even portable Epsons like the PL 1751 tend to survive better with hot running lamps since the lamp is in a dedicated area, with a fan running full time to cool it down. The reason the nicer ones like the Epsons survive (even in compact form) is the fact they cool the lamp which these do not. The cheap units survive fine for short sporadic use, not being run for hours at a time.
Now, the bad news: These cannot be repaired economically; you just can't. The cost of parts exceeds the purchase price. The parts cost makes them interesting toys someone like me would buy if I could get the price right or it came with an expensive screen (at retail) I can use on a real projector (and abuse it in places I wouldn't abuse a nice unit like my Epson) well past the death of the crappy projector; otherwise I dodge these turds. The good news is IF YOU GET LUCKY, you can sometimes buy the good units with no real issue besides no testing for next to nothing, sometimes with a very sweet bonus of a low-hour lamp (or at least well under the average for that model). I have just bought the whole projector at that point, especially if it beats out my old one which needs a lamp (I will still buy a new lamp but the price justified the upgrade).
Look for a nice used Epson, BenQ, or Optoma with HDMI; beware of DMD death with used DLP units and be ready to move on; it's not a cheap fix either and I use the Epsons because I'm sensitive to DLP flicker (not present on 3LCD); it just can't be avoided on one-chip DLP; I haven't tried 3-chip DLP against my eyes bc I have no reason to knowing I can just get an Epson and have 3LCD. An office unit with XGA (1024x768) is fine, but many have insane amounts of lamp hours; budget for a lamp in the price you pay looking for NOS Epson) but the newer office units tend to at least be native 720p/1080p capable. HT units were rocking this for a decade early, but many have lamps that were discontinued (sold by Epson) and can only be purchased aftermarket (making sure you buy ones with the Phillips Osram P-VIP lamp from a place like Pureland Supply). If you can find them from a vendor like Pureland go for it, but I would favor a unit with OEM lamps I can still get from Epson as an indicator I can semi-lowball someone looking to get rid of a pile of lamps and take home 2 or more for the price of one from Epson.
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