Getting Waveforms with Negative Voltage Component on a Bridge Rectifier
I am getting a waveform that drops below zero V, is this behavior
  acceptable for a circuit like this?


Yes it's perfectly normal for low speed diodes like the 1N400x series. They have a reverse recovery time of many microseconds and this means that they will continue to conduct for "several microseconds" when the voltage is reversed. This one (from General Semiconductor) is about as bad as it gets: -



It looks like you are using an applied AC frequency that is "beyond the scope" for this type of diode. Look for fast-recovery diodes if this is a problem. Also try using a smaller maximum time-step in your simulator - it will give a much more precise resolution at the expense of a longer calculation time.