Can't be 100% sure about that since I got the TV for this project and didn't use it much befor hooking it up like this. However I did play my 360 on it for a week and didn't notice anything, and the guy who sold me it said there wasn't any problems.
I was just playing around with MAME's options since I just clued in that it might not have anything to do with the TV at all. In MAMEUI32, the Default Game Properties has an Advanced tab on it. If I enable one of the following options, I notice that the tear seems to go away, on the 3 games I tested anyway;
Triple Buffering
Sync to monitor refresh
Wait for vertical sync
That makes me very happy. However, are there any downfalls to using these options? I have an idea what they do but not really sure. Also, what does Refresh speed do?
Currently I have it set to Sync to monitor refresh.