We have that model at home as a secondary TV (I normally use my projector for movies/gaming).
We're almost exclusively watching SD on it, so in hindsight it was a poor choice. Maybe it's par for the course for LCD TVs, but I really didn't expect any new technology to give such a poor picture. Worse still, RGB scart was no improvement over composite scart - I was expecting at least CRT quality.
That said, the wife doesn't care - so why should I, right...?
To be fair, the few times I hooked up HD equipment to it, the PQ was very good.
Anyhoo, settings are always subjective, but if you want some general pointers...the first thing I did was keep all settings at mid point, and resist the urge to boost sharpness and colour which will exacerbate pixellation and smearing.
I then turned the contrast way down, but increased the backlight to add overall punchiness without degrading image quality.
Of course, anyone else's settings/suggestions are only a starting point. Depending on the position of your TV, ambient lighting, and the source material displayed, you'll obviously want to tweak to taste.
Good luck!