I can confirm and share the same experience as Benedict: for me the PAL version is completely flawless even with LLE! As for the ghosting, this seems more like a broken bloom due to higher IR and AF? It isn't that bad with native IR and no AF. At least in Wolf form when you're in the twilight it is truely intended to be more blurry. As for when you're in the light world there is absolutely no graphical error for me.
Using Dev-build 1859
The Legend of Zelda Twilight Princess PAL EU
RZDP01
Rev: 0
2006/10/07
MD5: c46c133885383f96e7515c5cefd152d2
Using Dev-build 1859
The Legend of Zelda Twilight Princess PAL EU
RZDP01
Rev: 0
2006/10/07
MD5: c46c133885383f96e7515c5cefd152d2