That is not blooming. It is an electronic signal processing effect. There is a simple modification we have developed for older 8300 cameras, which greatly reduces that sort of artifact. Bill @ SBIG Service & Repair can do the modification for you.
Thanks Doug! Can you refer me to a link, to get the repair process going...its really awkward in its current state!
You'll find the Authorized Repair Center information about halfway down this page: http://diffractionlimited.com/support/technical-support/