Hi there and welcome to Just Answer. Thanks for asking your question. I'm sorry to hear about your TV.
Unfortunately it sounds you have a convergence board problem. You have a problem with your convergence board. This is very very common in older projection TVs like yours - maybe the #1 problem.
The TV has three color tubes in the lower half of the cabinet that project an image off the main mirror and onto the back of the screen. The convergence board processes the signals to the tubes and adjusts the light beams so that the red, blue and green images all line up. When the board fails, the light beams don't line up and you get the '3D' image with the separated colors and bowing near the edges.
The board has two main components called convergence amplifiers (some call them STKs or convergence ICs). They can fail. It is also common for some pico fuses or fusible resistors on the board to pop. If all three colors are off, then the STKs are probably bad. If only one color is off, then it could just be a pico fuse or other small component in the signal path.
You have three choices.
1. Some people have fixed the board themselves but it is not a job for a beginner. The parts are only about $60 but you need to know what you are doing. I can point you in the right direction but you need to have a good understanding of soldering and troubleshooting basic electronic components. You would need a DMM and soldering tools. Here is what is involved - it will give you an idea: http://cmpalmer.blogspot.com/2006/11/fixing-my-own-tv-part-ii.html
2. You can try and find a rebuilt board. This would probably cost around $300 and you would need to pull the old one out and put the new one in.
3. You can have it professionally repaired. This would probably cost around $550.
I'm sorry it isn't the best news.
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