Panasonic direct views are notorious for being overdriven. Of course, they aren't the only ones but in my experience as a calibrator, they are one of the worst. Every direct view Panasonic I have metered for light output has run between 60 and 80 ft. Lamberts from the factory. Properly adjusted, they should range somewhere between 30- 35 ft. L. This is most likely the main problem.
Another co-conspirator is scan velocity modulation. This usually causes a ghosting effect around objects and a loss of edge definition. I believe that you can go to the advanced menu option and either turn this feature off or adjust it down in increments.
You have three options: 1)using a paused high contrast image from a DVD, adjust your contrast way down until the glowing goes away or is minimal. Then adjust your brightness(black level) up to where dark objects are visible but not hazy. 2) purchase the AVIA or Video Essentials test DVD and adjust your controls per their instructions and test patterns. 3) Find a local ISF certifed tech in your area to properly calibrate your TV using test equipment.
For more info about an ISF tech in your area visit
http://www.imagingscience.com or call 561.997.9073.
Good Luck