Ok quick update:
LCD (the one i tried) did not work [Maybe will have better luck when my SD/FF arrives]
Use Picasso96Mode and set any non-interlaced resolution with at least 60Hz.
I assume, 800x600 will be maximum, what You can reach.
1024x768 is interlaced [Maybe will have better luck when SD/FF arrives]
Yes, Picasso 2 has poor pixel clock. One and only reasonable resolution is 800x600x16bit, mentioned above.
Slows down the Amiga pretty badly [Will it make a BIG difference when my A2630 comes?]
Yep, 68000 and Zorro in segmentation mode... but difference should be noticeable. On my A3000 with 030/25Mhz is quite OK. I've got Retina Z3, but still - ECS 4/8 colors in PAL seems to be much faster here ;-)
At 256 colors its eating away my Chipmem REALLY REALLY badly.. Even at 640x480
Dunno...
I'm NOT using P96 (Because i have a 68000) i am using the Picasso II drivers from Villagetronic. I can't get more than 256 colors... Is this cause i'm not using P96?
Probably yes. 256 col. on WB can be a limitation of Picasso default software.