I think what td is getting at it the slight "rippling" effect inherent in the 2px wide method.
Which, unfortunately for td I guess, is just how the module works. I don't really have a problem with it.
Adventure Maker uses, as far as I know, a different technique, which, from what I can gather from looking at AM, uses a far higher resolution for each section of the panorama (the demo AM panorama game uses a number of 2000x2000+ images to make up a single room, so I presume it handles the maths a little different to Steve's module).
Like I said, I'm happy with the current performance of the module, and if slightly smoother scrolling can only be achieved with a loss of framerate, then I'm content to stay with it as is.