Normally I'd agree and wouldn't waste time on repairs I couldn't do easily in house, but the value of the projector (when new) and the fact the room will lose its IWB facility being as its an interactive projector forces my hand a little. Also unfortunately my workplace isn't interested in using ebay for procurement.
Interesting, I've not come across one which behaves that way before, we do have another one in operation so I might just try switching the lamps, see if it persists.
Red Steady Flash which the documentation suggests as Overheating, Fan Failure or Colour Wheel, I don't believe it to be one of those three though, unless its a component fault causing it to read an overheat when one does not exist.