hello tankbuster
I find that my the points are too bright in my modded VX-1000, and I have to have the threshold within a pixel of the right hand edge. They work best when the AA batteries are almost flat!
looks like your leds are indeed far too bright for your modded webcam, even with the VL filter.
What you can do is reduce the led current , by increasing the resistor(s).
So , your batteries will last longer and you'll find it easier to adjust since you'll work in the middle of the treshhold range , not near the edge.
What led current setting do you use currently ?
cya