Exciting progress. :) Would it be possible in the future to generate NUVIEX (NUFLIX movies in REU-format) as well (see NUVIEmaker V0.1e ) using the same new 'mode'? And just to dream even further: Have a REU-based video format that support streaming audio (f.ex. a sample update every other scanline) in exchange of a few cycles less spent on video update. I know it's far from what you're trying to do right now. Just thoughts that comes to my mind when seeing this progress. :)
Oh wow, that's some awesome feat, I'm loving the editor already, in spite of being one of maybe 20 people that ever used our c64 based ones! ;-D
When we made NUFLI I asked Crossbow if it were possible to have the sprite color change at the same height as the bitmap, and he did make a version of the displayer and Bitbreaker changed Mufflon to try out and compare, but the Error difference was insignificant, so we stuck with the even/odd layout..
What I would suggest exploring to make this a true new mode is to bring back the Multicolor option that we took out coming from MU(I)FLI and that Mufflon never suported (even whennused for MUIFLI!). Since you have sprite register writes galore, you could use one of them (preferrably the first in each line) to switch any of the six sprites between Mcol and hires in that line. Plus you could also change sprite multicolors! Having the option of four colors in a char instead of two, even when they are 4px wide, can help a lot in areas with much detail, as can be seen when you put unrestricted hires images through Algo's MUCSU converter, which uses Mcol expanded sprites exclusively (but no FLI!)..
Having never worked with such things, isn't it possible to parallelize it nontheless, and have i.e. several conversion runs with different reg categories each?