Is there any way to make a non-shielded speaker a shielded speaker? I am currently looking for info on the web but as of this posting have not found anything.

I received a response from KLH today telling me that the center channel speaker is shielded and to "move the speaker a few inches" (away?)from the tv. Can't really move it far from the tv since I have it sitting on top of the tv!! I am going to try to lay something, maybe a thick piece of rubber or something underneath the speaker to see if it helps with the distortion.

Unfortunately, there is no good way (without large costs) to shield an un- or improperly shielded speaker.
The problem is that the magnetic field produced by your driver's magnets is interfering with your picture tube.

In a shielded speaker, two magnets are installed on each driver to cancel out the magnetic fields emanating from the back of them.

It sounds like your so called shielded speaker isn't. Shame on KLH for releasing a product falsely. If the thing is shielded, it WILL NOT interfere with your TV.

Unfortunately, rubber won't help the problem. The magnetic energy will pass right through it.

Your best bets are:
1) Move the speaker further away from the TV... (probably about 1' or more...which may not be easy)
2) Get a new center channel.

Sorry I had to be the bearer of bad news.