The hologram forming systems of the invention form diffusion type holograms in which undesired spurious transmission hologram recordings are eliminated. The reflecting surfaces are moved during the recording process so that the reflected rays change in phase relative to the primary recording beams and spurious holograms cannot be recorded with sufficient intensity to form undesired reflections in the developed hologram. Thus, pictorial type holograms such as jewelry holograms or art holograms do not present undesired ghost images or flare patterns to the viewer. The concepts of the invention also include formation of diffusion type holograms for high gain directional viewing screens.