Hmm... I can create the effect from that video by replacing the 4.0 values with values of 1.5 and without changing the plusses to minuses, and the smoothing effect works correctly. Try that and see if it's preferable.
If you want to stick to your method, then altering the 0, 1, 2, 3 here...
if (fractionx<0.5&&fractiony<0.5) PxObj[objectpass].SetView (PxObj[objectpass].GetProperty("PxView"), PxObj[objectpass].GetProperty("PxLoop"), 0); // normal object graphic
else if (fractionx>=0.5&&fractiony<0.5) PxObj[objectpass].SetView (PxObj[objectpass].GetProperty("PxView"), PxObj[objectpass].GetProperty("PxLoop"), 1); //offset 1px to the right
else if (fractionx<0.5&&fractiony>=0.5) PxObj[objectpass].SetView (PxObj[objectpass].GetProperty("PxView"), PxObj[objectpass].GetProperty("PxLoop"), 2); //offset 1px downwards
else if (fractionx>=0.5&&fractiony>=0.5) PxObj[objectpass].SetView (PxObj[objectpass].GetProperty("PxView"), PxObj[objectpass].GetProperty("PxLoop"), 3); //offset 1px to the right and 1px downwards
... to 3, 2, 1, 0 should do it. However the smoothing effect will not be as satisfying because 26.0 results in very small movements.
I can't say why this used to work with earlier versions, but investigating this made me notice that smooth scrolling was broken for objects set to -2! I'll replace the module on the first post.