What format do you mean *exactly*? The more "prescambling" you do the faster things will be, but it can make other things more difficult (textures using too much RAM, rendering may be more difficult). KK has some info about what he's doing for Dread in the
thread, but the format might not fit what you're doing. Maybe you can even convince him to share the C2P, but again the format might not be appropriate for what you're going for.
What frame rate are you targeting and how long do you think the other stuff will take? Could be a fun exercise to try to come up with something, but my gut feeling is that 320x120 at 1x1 is going to be tough.