And I'll add something to that. Which you already said about the concave lens. The lens isn't flat. When away from the lens the bubble creates kind of like a prism(not entirely). The light is reflected off the lens in weird directions. May not be too noticeable, but the best layout is gonna be close. When butted up to the lens it's not as noticeable. When backed away from the lens the lens works agains you. The lens is not 100% optically clear. If your lens is flat like most the output doesn't suffer, as well as, most flat lens headlights don't eliminate the projectors ability. When using a projector you want efficiency. Everything you can maximize in order to get more efficient light, needs to be done.

Think about telescoping flash lights. The further back the light is in the greater the hotspot(spot lighting), the further forward the more flood light. The projector is already tuned to be both wide and far. When you compromise it's ability, you defeat the purpose of the projector. I'm not bashing you, I just wanna share some info.

Great info and not taken as a bashing for a second I should have clarified that I just want to push it back about 1". Dunno I that will be a huge deal or not

Besides the stated reasons for keeping it as close to the lens as possible, you would have to do a good deal of hacking of the headlamp housing in order to push the projector further back. The shroud (which also would have to be cut down a lot and might look less than ideal) should be able to cover any holes, but it just adds to more points of entry for condensation.

See pic below. You would have to cut the headlamp housing where you see the red circles.
Attachment 502330

Ohhhhh so you are saying that you already dropped the projector into the housing as far as it will go without removing a ton more of the housing? If that is the case I will just cut the one round hole and let it sit in there as far as it will naturally go.

Exactly. It's already a really tight squeeze in the stock headlamp with the projector touching the lens. So you can't really set the entire projector within the headlamp housing and have it set further back from the front lens without serious modification to the headlamp housing.

i just ordered the H1's, do you have any idea if it will be a similar install? also thank you for this thread because i've spent 4 days straight looking everywhere to find a step by step like this and couldn't find one for the JK, this ones legit.

The h1s are small and very minimal amounts of cutting will be required

2017 - Update
 

I know this is a really old thread, but I wanted to update in case anyone stumbles upon it. This install used the Morimoto D2S 3.0, sometime in 2016 Morimoto rolled out the D2S 4.0, which has a slightly different shape. Given the different shape, these projectors no longer require a minimal amount of cutting. It is still possible to get them to fit, you will just have to cut out a lot more. Just wanted to put that out there before someone goes out and buys all the supplies thinking it will be really easy, like me haha.