Problem with Projector, texture is smearing.

[ADeadRat]

So I got this problem with Projector where the edge of the texture is smearing out into infinity (from what I can tell…). Can anyone tell me what Im doing wrong? I really cant find out whats wrong here.

Image to show what I mean:

Here is my projector settings:

And the texture:

[FortisVenaliter]

Change the import settings on the texture to clamp instead of wrap. And make sure there is at least one pixel border of transparency around the edge of the image.