I used a 500W halogen site/work light for a film in the past. The light had baking paper over the front to soften the light and after using it on and off for about an hour our living room started to fill up with noxious smoke. The components inside the light had seriously overheated and started to burn and melt. If the unit hadn't been self contained with the glass plate on the front to prevent oxygen getting in quickly I'm fairly certain it would have set on fire rather than just smouldered. As it was it smouldered for a good five minutes after turning it off at the socket.

I recommend not wrapping site/work lights in anything.

- don't make the same foolish mistake I did!

If you do get any smoke coming out of a site light that's overheated don't ever use it again as it's probably damaged inside - chuck it out - it's not worth the risk. In fact that goes for any light unit, unless you get it checked by an electrician.

That's what diffusion gel is for. It doesn't burn. But if you get it too close to the bulb it can burn. With some metal coat hangers and a pair of pliers you could make a gel holder for a work light. Or even easier, just hang a piece of gel from a C-stand.
Recently I saw one of those worklights with fluorescent bulbs. They're pretty soft.

It wasn't the baking paper that burnt Bill, the light itself overheated and burnt inside. It's important you don't prevent the light from losing heat by covering it up. The C stand is a good idea bill.

I don't know if this was suggested because I didn't read the whole thread. I started using diffused tungsten lights back in 1995 when DV format came out. This was before I had bought some Photoflex light domes. I used white umbrellas in front of my 1000w lights. The lights shot through the extended umbrellas attached to the light stand and produced very soft light. Now worries about fires as the umbrellas are far enough away from the lights. Used this set up for years. looks a whole lot more pro than using bed sheets and shower curtains. The umbrellas were like $25 each.