The optical efficiency of an active matrix liquid crystal display (AML
CD) light valve projector is determined by the optical design, the met
hod of modulation, and the efficiency of the light source. This paper
describes a new projector with an efficient modulation technique, whic
h can employ unpolarized light by using a unique diffraction grating f
ormed in a liquid crystal panel. The technique uses a Schlieren optica
l system and has been tested with xenon arcs, metal halide arcs, and e
fficient solid-state laser light sources. The optical system reduces l
aser speckle significantly when highly coherent baser sources are used
All source combinations exceeded 3 lm/W for white light projection pe
rformance, and the experimental results of the combinations are discus
sed. This modulation technique obtains a high contrast ratio with smal
ler panels than can be achieved with rotation-of-polarization light va
lve projectors.