Hi everyone. I just bought this TV yesterday locally for $1499. I didn't have a chance to pickup my HD cable box yet, so I'm still running regular cable... which means that picture isn't that great.
I did hook up my Xbox 360 over component, and it looks great. I also tried using VGA, which does appear a bit sharper to me.
I tried the settings listed above, and it did help the picture a little, but nothing drastic in my opinion.
I think the recommendation for the backlight is to help with the black levels. If it doesn't look good to you, I'd recommend setting it to whatever looks good to you. In my opinion, settings are all relative... what looks good to others may not look good to you. You might also consider getting a calibration DVD.
I noticed that the same store has the Sony KDL-46V2500 on sale starting today for the exact same price. Anyone have any opinion on this TV compared to the LG? I could take it back and exchange it for no cost.