Whoa, sorry. When you said you had the 26" I assumed you had the widescreen as well, you were just linking to the regular TV. I do have the widescreen version of that TV, which is 26". Apologies.
Ok, here are my settings for my Xbox input (the TV can hold seperate configurations for each input - my Xbox is connected on Component 2).
Contrast - 55
Brightness - 45
Sharpness - 45
Color - 40
Tint - G45 --- R55
I went through the first level of Chaos Theory, since it is extremely dark, and I couldn't notice any trails like you are describing. I don't know if maybe I'm just not seeing them or what (which very well could be, I sit a good 10 feet from my TV). The only other thing I can think of is what twistedsymphony said about the particular set you have. I guess if it isn't extremely noticeable and interfering with your gameplay, I wouldn't worry much about it. Maybe try the other set of component inputs on the TV (I assume you are connected via the HD pack from your Xbox?).