I'm primary a wedding photographer and have done exhaustive tests using all sorts of combinations with sRGB vs Adobe RGB with a 10D.
I was having all sorts of problems with saturated skin tones, etc. too red, yellow, etc.
For beautiful skin tones and most other applications where natural (not saturated) colour is necessary my in camera settings are:
Colour Profile: sRGB
In camera parameters for indoors and non contrasty harsh light are:
Sharpness: 0
Contrast: 0
Saturation: -2
Colour Tone: -2
For bright, outdoor contrasty light I reduce "contrast" to -2 and underexpose by 1/3 stop. This alllows you to retain more of the highlights in an image. I shoot Large JPEG.
At all times indoors, in shade or very overcast days I custom white balance using something white first making sure I use the exact same method I intend to take the pic in. (available light, bounced flash, etc.) This is most important in obtaining optimum results. My skin tones are now really natural and my post processing time has been drastically reduced.
Hope this helps,
Mark