Yes, the correct setting was the lowest. I actually still use one step (I think it's the "softer" setting) up with the D1. At first with the D1 I though the picture was a lilttle too digital looking. Then, I read that the sharpness setting over the M1 connection was affected by the sharpness setting when using the component connection.
So, I had to hook up a source with component, go into the menu and adjust sharpness down a notch. Looked much better. Still didn't like it at the correct softest setting. So yes the sharpness settings over m1 are affected by the other input settings. This is with the second firmware, so I don't know if they changed it with the most recent.
If the adjustment range is the same on the in72 I may prefer it up a notch. We'll see tomorow! Hope I get the 2a. Oh and I got a rediculous deal..got an authorized dealer to price match the lowest price on the web