Projector Source Problems

I'm trying to set up a projector in my theatre for a 12x10 screen and we're running into a problem with the source of the projector, since it's rear projecting onto a diffusion cloth instead of an actual rear projection screen. We've tried moving it all around the backstage area but still can't get the source to a place where it's not distracting. I was wondering if anyone had any tips for masking it or reducing the source, it would be greatly appreciated!
 
I concur. I generally place it low as it is easier to hide from the audience. It doesn't take much to drop it out of sight.
 

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