So I finally got time to sit down and try to figure this out. I took another look at the sensor and noticed the sensor block had a deformity (almost like a crack) but more like a ripple in the glass. It was on the bottom section of the sensor glass so that would make sense for strange reflections I was getting in the the top of the frame. I guess whenever a light would hit it just right it would bounce whatever was just out of the top of the frame back into the sensor.
Just shipped it back for a repair! Everything under warranty so only had to pay shipping!
Cheers!