Seeing the projector's source light is primarily caused by opaqueness of the window screen material. Too thin and you can see it glow. It needs to be thicker so only the projected images show but not thin enough for the light source itself. Look at the rear projection tv's of the past 5yrs, whether they were LCD on the big box 3 gun variety. They are all reflected off a mirror onto a thick projection screen from the rear.
When I started the workup on trying to find a good and cheap rear projection screen, a fellow rp user led me to try white shower curtain material. I had tried frosted before and it gave me a hotspot- what you refer to as source light. But white did not, and I have been advocating that ever since.
Even if you lower or raise the projector to aim from an angle the fact is people will be close enough to your house to see the hotspot unless you treat it properly.
I also tried white plastic tablecloth, but that too was a little too thin and hotspotted.
Read my thread. Start at Page 2
http://backyardtheater.com/forums/index.php?topic=222.15
Victor