Hi Farren, I have build 2 sandboxs with a epson powerlite s41+ and a epson powerlite s31+ both are not short-throw projector, they are about 140-150 cm/ 55 inch above the sand. Also, I just put the kinect at that same height, so it’s not really necessary to put it lower than the projector, you lose a little resolution, but people can’t really tell the differences they will still be amazed from the sandbox.
So I can’t help you with the shadow problem if you put it lower, but i will try in some weeks with a new one to see what happens.