I'm using a PS3 and a 360.
The settings are almost stock from game mode, I just lower the contrast to 65 and the sharpness to 5.
It looks good to me, no complains.
As for the input lag, I never had problems with it. Actually I don't feel any difference.
LG plasmas have the highest input lag (this model is around 100-130) and some peoples say it's unplayable, I think there is a little bit of exaggeration to be honest.
It's like phosphor lag, most peoples don't notice a thing, while a minority are sensitive to it.
I'm playing boxing games, race games, FPS, and never had an issue with input lag.
Like it's been said numerous times in this topic, you'll never have a high end Samsung or Panasonic experience with an LG.
There are some drawbacks, but they go with the price.
The image looks stunning, I have no complains for the price I paid.
I wouldn't even be able to afford such a big screen if LG didn't manufacture those plasmas.
There is no way I'm going to pay +1500$ for a Panasonic, in the end it's just a TV (I paid this baby around 700$, it's half !).
Edit : it's off topic, but actually if you're smart (deactivate HUD's) playing games can help a lot for the break-in period.
In the latest games you are offered to deactivate the hud's and scoreboards, it makes the game more realistic and it saves you from burn-in.