Hi Don Pool,
Thanks fo the reply.. very appreciated. Interestingly the leaking occurred in early July ('08) when first attempting to install. I never noticed the bulging until recently - but I beleive it has always been there. The reason is that there were sooo many problems, we have already gotten a new pump, timer, filter, valves, ladder and skimmer - you would never beleive this story if I told you everyhting that has happened.
Anyway, the cleaner is a Great White, and if I turn the system to all "clean" rather than partially between clean and skim, that thing practically climbs up the walls. It was just this one side, by the prior leaks, that the Great White always "hung up" on - never really climbed those sidewalls. As a result, I recently noticed a brownish film in that area of the pool walls. We then used a brush to scrub the walls and that is when we noticed the bulging. I do beleive it is not a new problem or related to an on-going leak - the water levels are fine. I have noticed the pool returns have substantial air bubbles but the dealer says that is not indicating a water leak - something else - I think he said someting about "o" rings. They claim they "pressure tested" after repairing prior leaks.
They have been pretty good about fixing everything here - every time there is a problem they say "never had that happen before", and eventually fix it. But how many problems can one encounter and always hear "never had that happen before" before you start to question the quality of their service and products?
Now, they have simply ignored me about the bulging walls - they don't answer my e-mails. I was very nice, explained what I found, and asked if this was a problem now or would it be in the future - did it need to be fixed, and so on.. no reply from them. I'm starting the think this may be a big problem and one they do not want to face as they have most likely lost a ton on money on this pool already.
Hope this help you understand better what is going on here.
Thanks so much!