Personally, I don't see much development happening on this device, unless someone from Woot decided to take the initiative. That said, overclocking seems like a bad place to start. The reason the processor is underclocked is pretty obvious: the device works really well at 800mhz. The only time I run into speed problems is with games. And that is clearly not a processor issue. I have a 600mhz Optimus V, and it easily runs most games without any problems. However, on my technically faster eDGe, these programs are absurdly slow. My guess is this has something to do with lackluster graphics support. If that's the case, the best route is to look into possibly working with the video drivers, but a chance exists that the hardware is simply not fast enough to play games at decent speeds.
Then, you have the issue of the lackluster e-ink support. While I love reading epub books, the e-ink software is buggy and lacking some important features. In particular, it would be awesome to have a *.pdf reader that allows you to easily zoom and annotate texts. But due to the fact that the existing software is licensed from Adobe, somebody would probably need to build this stuff from scratch.
Also, Honeycomb might be kind of neat, if someone were interested in a ROM project.
In my mind, figuring out how to overclock is a huge waste of time. It's not going to meaningfully solve any problems to have that little 1ghz by your processor speed.
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