Greg,
That looks rather strange. I am currently on the Pre-Release version, and I recommend that you update to it also.
By the way... that screen protector was meant for shipping purposes. I am sure that you will enjoy the LS more once you remove that. The screen is very durable, and is scratch proof. Well, nothing is completely scratch proof, but it will take a rock and an asphalt parking lot to scratch the display. Even then it will still function perfect.