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As projectors become smaller and less expensive, the use of mobile (or portable) projectors is significantly increasing in environments where an ideal white screen is not readily available. Images from mobile projectors in this environment are often reproduced with visually distracting color distortion due to the use of arbitrary colored projection surfaces. In this paper, we propose an adaptive color compensation method that compensates for color distortion occurring in images projected onto an arbitrary colored projection surface without requiring use of a high-performance camera in a projector-camera system. The proposed method is based on gamut extension of a low-performance camera for device characterization and uses an adaptive clipping error reduction algorithm. Experimental results show that the proposed method effectively compensates for color distortion with an affordable low-performance camera, making the projector-camera system far more practical and marketable.