I use red AW 18490 and aw 18650. So, say you fully charge a battery then let it sit for a day. When fully charged and it's at 4.20. What voltage should you expect it to be at the next day without being used? Meaning how much does it drop naturally from just sitting.
That depends on the age and the treatment of the battery. As batteries age out (or if they have been abused) they lose their capacity to retain voltage at rest. A brand new battery will most likely retain 4.2 volts at rest. But with use and time the resting voltage will drop further and faster. I just dumped some eFest 18350's that were long in the tooth - the resting voltage was dropping on this suckers to under 4.08 volts within an hour or so of the end of the charge cycle - with correspondingly shorter and shorter run times.
Just leave your batteries sit in the xtar at the end of the charge cycle for an hour or two and see what happens. A VP1 or VP2 continues to monitor the battery voltage at the end of the charge cycle. If you aren't seeing a significant voltage drop within two hours chances are you won't see a different voltage 24 hours later either.
Don't obsess over it either. A battery with a resting voltage of 4.18 volts may not be "perfect", it just means it's showing signs of being used.
Also, on the xtar is it best to charge at .25 or .50?
Well, either of the batteries you mentioned can be charge at up to the one amp setting with no problems. The theory is that the lower the charge current you use the longer the overall lifespan. The tradeoff is the lower the charge current the longer it takes to charge. I just the 250 mA setting almost all the time, unless I'm in a hurry to get batteries off the charger for some reason.