I finally got the thing to work. I set the Accelleration Delay to OFF, tried scrolling through a long list of Albums (obviously with accelleration OFF), then tried these settings:
Accelleration Delay 500 ms.
Accelleration Speed 2x/1s
Anyway, now it seems to work, but it's very sensitive. It feels like if your finger comes off the iPod scroll wheel at all it slows down again.
After playing some music, it's back to being slow again. Maybe this is some sort of memory issue with large lists? Is there any way to make this thing faster on an iPod Video 30 GB and stay that way?