The light transmission and scattering properties of a PDLC light shutter in the transparent (field applied) state are studied. It is found from transmission experiments of samples containing sub-micron size droplets that there is a broad distribution of about 10° about the field direction in droplet alignment, even in saturating fields. Evidence is presented that this distribution is principally caused by the non-spherical shape of the droplets. Measurements of the total scattering cross section imply that even in the transparent state there exists some multiple scattering or interdroplet scattering effects. Transmission and scattering measurements in samples with supra micron size droplets show effects of anomalous diffraction and are sensitive to distributions in droplet size. The theory of scattering from a nematic droplet in the anomalous diffraction regime agrees favorably with experiment.