It all depends on your preference on the regular settings like brightness, sharpness, color and picture. I put my brightness and tint in the middle, color is just 2 bars up or so from the middle, and the picture just slightly under full or a little less. As for the sharpness, I turn it all the way up on good detailed games (especially with component video) and in the middle if it is a real jaggedy pixelated looking.
Don't bother using the VM edge enhancement option, you won't be able to read text on a lot of games. As for color temp, either use Cool or normal NTSC standard. The Cool will make it have a more blueish hue, and the warm will do a more redish hue which you don't want since that will cause yellows, oranges and reds to do color bleeding.
Now buy component video cables for your DVD player, X-box/360, PS2/3 and your GameCube/Wii as well. Compare them to the S-video and you will see a difference especially in the games with heavy 2D usage and/or vibrant colors.