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Dave, Is there a reason your not considering a Plasma?

Have you tried bypassing the A/V receiver?

Maybe your having a decoder issue. Is in the the HDTV settings in the Directv receiver set to Native ON? Try setting both on or off and see problem remains.

The reason Epson is stating 12' is they know you will get a much better image at that distance with a 90" picture. You will need a lot more projector if you want to fill your 120" screen.

16' would be correct for a throw to 120". You might want to test at 100" just to see how much better the image is. Jeff