On the rooting section, it confused me a bit on one basic point:
I did not install an overclocking kernel. I simply rooted (via Motocache1), and installed SetCPU and clocked it to 800 Mhz (or am I imagining this?). I believe this has sped things up and made it super smooth. Not too interested in going much higher.
-- I dont know if simply rooting via Motocachse method increased system performance, or if it is SetCPU or both.