A system and method for producing spatially modulated monochrome or color light having gray scale during a given period of time includes a spatial light modulator having a light modulating arrangement switchable between different states so as to act on light in different ways. A switching arrangement switches the modulating arrangement between different states in a controlled way during the period. The system also includes an illumination arrangement for selectively and alternately directing light of constant intensity and varying intensity into the modulating arrangement during predetermined subperiods of the period. In a color version of the system, the illumination arrangement directs light of different colors into the modulating arrangement during predetermined subperiods of the period, thereby providing a system for producing modulated colored light having color gray scale during a given period. In one embodiment of the present invention, the predetermined subperiods include a first plurality of subperiods of unequal lengths of time which, if arranged in order timewise, increase in duration by a factor of two. The predetermined subperiods further include a second plurality of subperiods and the illumination arrangement directs light of variable intensities into the modulator arrangement during each of the second plurality of subperiods which are of equal durations. Each of the different intensities of light double from subperiod to subperiod when the subperiods of equal length are arranged in a particular order.