the squirrel spotters come from the fact that the reflectors are designed for a halogen bulb and not a HID bulb. The halogen reflector doesn't have a perfect cutoff, and there are small pockets of light that shine above the cutoff in the direction of trees and oncoming cars. My family's old lexus LX470 had them, they look like little squares of light. it is meant to light up sign posts above the cutoff.
EDIT: kinda like this, just smaller i think on the newer models
http://carphotos.cardomain.com/ride_...0009_large.jpg
and about fixing it, sorry I don't know anything about fixing the projector's squirrel spotters, but here is a thread in the camry forum who supposidly did.
Installed Xenondepot 4300k HID kit today You might find more help in the Camry forum due to the fact that they have had projector headlights for a few years now.