Does anyone know what is the best way to align the front end on a sp500? Someone told me the tires should be toed out about 1/4" but I'm not sure if its right.

 

Yeah, sumthin like that, I think I read in the manual(hint hint). If the tires are perfectly straight(no toe-in or toe-out), your quad will be all over the place. They need a little "scrub" to keep it going straight.

 

Yup, 1/8 to 1/4 inch toe out. The less toe out, the more responsive it will be to handlebar input, and the 'squirrelier' it will feel at speed. More toe out will make it seem to steer a bit more sluggish, but will be more stable at speed.
Owner's manual should have details on how to do it right.