Hi Mohan,
you can set external crystal frequency value in the Clock manger. You also need to tune clock dividers/multipliers to have resulting frequencies for peripherals in correct range (see warnings in the Processor expert).

With 26 MHz crystal you may have hard time (combining dividers/multipliers) to get maximum performance for example for core clock (max is 112 MHz). Better idea is use crystal frequency which can be divided by 8. From my point of view - usage of 8 MHz crystal is okay. Do you have some special reason for using 26 MHz crystal oscillator?
Jiri