Ok, so I think I can rule some things out and I have a few pictures I will submit in a second.
One thing to keep in mind, I have used this machine for a long, long time. I have changed almost all the parts and keep it pretty clean. The head on it is less than a year old. I replace the capping station and assembly every 3-6 months. Other than this issue, the machine is actually running really well.
Bad Artwork - Its the same as we always use and much of it comes directly from vectors as high res jpgs, I do not think its an issue.
Encoder Strip - Its possible, but I do clean it every day. It doesn't seem to make a difference. Also note, this machine is really running well.
Ink Leaking - I cleaned it all this morning, ran some shirts, it started happening when i printed black on light and moved the head over to take a peak. I will post pics soon. One thing for sure, no ink i leaking out of the head. I did lower the inks a bit just in case because we have had some pressure changes and the machine is a little touchy about that. This doesn't seem to be an issue.
The one thing I did notice is that there is quickly a buildup around the head. In the pic you can see yellow on the part of the head that is silver and black on the other side. It was cleaned just this morning. I am wondering if maybe the wiper isn't working properly? How can I test to see if the wiper is working and cleaning the head like it should be?
Thanks!
Jason