cwong,
I wouldn't even try downscaling video to 1bit. The newer Palms and Clies have hardware acceleration support for high-color display. At least in my case (and I am using an older Clie N760C) high-color is faster than grey scale or b&w.
Tables-off should definitely increase scrolling and processing speed. Also, when you open a new document in iSilo, you should see a blinking icon to the top left. This means iSilo is currently processing the document formatting. Wait till this is done (should take several seconds depending on the size of the page and the speed of your handheld) and see if scrolling works better after that.
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