Internal display part replacement

COMPLETION ANSWER

In most cases, the repair cost can be as much as the unit when the LCD "burns" like this. On the new generation of cheap projectors, the same problem also occurs due to the COB LED toasting the LCD due to poor cooling, but these have a similar problem: they also have poor cooling which toasts the LCD, but you also are using a Halogen bulb as the light source which gets even hotter so it is a lot worse on the initial occurrence; the COB LEDs burn up the new ones very similarly (heat) but it tends to hide a bit and just get worse with no warning. These older cheap units with the halogen bulb burn like this a lot faster due to running a lot hotter inside. If you run a bright LED flashlight for 5 minutes and touch the head you'll get a small idea of how bad the heat gets within a short amount of time in these.

If the unit still works they can sometimes be saved by upgrading the fan, but once the damage is done it's done; you can't undo the damage and the repair cost totals it out. This is why I detest these and would much rather pay a lot more for a used Epson/BenQ/Optoma/any known brand portable unit, even with a "consumable" lamp; they do not die in 6 months-1 years due to heat-induced LCD damage.

For these, the parts are probably unobtainable without a donor which may have the same failure mode. It's probably time to recycle this unit and get a new one, but try and look for a used surplus projector that came from an office -- and if you go DLP, make sure it doesn't have an issue with the DMD. One bad "mirror" means the expensive DMD is on borrowed time. These things are so bad I would only buy one if it comes with a nice projector screen for not much more than a standalone, use and abuse it in places I wouldn't put my Epson through and dump it when it dies due to this fault.

If it's DLP and has a bad DMD this is what it devolves to: