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'Stars billions of light years away' definitely a possibility, but can the distance be100 % accurate ?
Lets go back to the Super atomic cloud suggested by A Einstein and SN Bose in 1924. Atoms crowded close enough in ultra low temperatures would lock to form a single slob of solid matter which can produce waves that behave like radio waves. This principle can be used to slow down light to almost a stand still to 1cm/s. And we know that this is going to revolutionise data handling methods in the near future. Imagine light rays from a particular star is interrupted by these kind of super atomic clouds and we never knew of them being present, where some may be even billion miles across, before it reaches us, what are the implications on our studies? Say after some time these interrupting clouds move away from that particular star light, and say after it comes back in between again. Although we might falsely pick up the 'super atomic cloud' as that star, but actually, that real star may be still beyond, back in time !
The problem with such models for the Bose-Einstein condensate or "atomic clouds" as you put it is that they are extremely fragile and any interaction with outside temperatures such as the CMB or background radiation in space would eliminate their characteristics.
"Compared to more commonly encountered states of matter, Bose–Einstein condensates are extremely fragile. The slightest interaction with the outside world can be enough to warm them past the condensation threshold, eliminating their interesting properties and forming a normal gas. It is likely to be some time before any practical applications are developed."
http://en.wikipedia.org/wiki/Bose-Einstein_condensate
Another problem is that even if this condensate or atomic cloud did interrupt light from from certain areas in space, other areas would not be affected and we could measure the differences between the two areas.
As far as measuring the distances to various stars or galaxies, there are also observations that the speed of light may have actually been faster in the past and some experiments under controlled conditions have succeeded in speeding up light many times. The implications of that are interesting as well and could have applications in faster computer designs.
"Some scientists now claim they have broken the ultimate speed barrier: the speed of light.1
Particle physicists at the NEC Research Institute at Princeton apparently have indicated that light pulses can be accelerated to up to 300 times their normal velocity of 186,282 miles per second."
http://www.khouse.org/articles/2000/265/
http://www.timetoeternity.com/time_space_light/light_pulses_flout_.htm
http://www.ldolphin.org/constc.shtml
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