1) I get it fixed it is worse.
Its a warranty. Get it fixed. Whether it gets worse or not, you will never know till you try. And if its blobbed now, its not going to necessarily heal itself.
2) Sony can't fix it & I have to get a Sony LCD (they don't refund my $ but credit it), there LED
I bet they can fix it. Their SXRD tech is alive and well, with a new line of very nice PJs. In fact, get a PJ! Add 100-120" High Power screen for $300. Get a $799 42" Panasonic for overcompressed TV signals. Use the PJ for Bluray.
LCD too much $$, I'd rather have a 60" pioneer elite for the same price.
I hear ya, and I agree.
3) What happens to the SXRD, do I have to pay for the return or they do or what?
I wish you the best, and keep us updated.