What it is: Also called black level, brightness actually adjusts how dark the black sections of the picture appear.
What it does: Excessive brightness can result in a two-dimensional, washed-out look with reduced color saturation. Images with brightness set too low lose detail in shadows, and distinctions between dark areas disappear in pools of black.
How to set it: Turn up the brightness to full, then reduce until just at the point you notice a loss of shadow detail - for example, when people's eyes disappear into the depths under their brows, then you've set brightness too low.
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Some plasma, LCD, DLP, and LCoS TVs won't ever look black, so you'll need a setup disc to properly configure their brightness.