Oh yeah, I've got maybe 500 or so songs in my library currently (I like to fill up my card with movies too ) Canola handles it no problem. It does take a few minutes the first time you add your music directory since it has to catalog all the tracks for you but after that it's quick.

The scrolling works fine for me, but if you had a lot of files (say a few thousand+) and you were viewing them all (all songs), yeah that would be a pain to scroll though. My biggest complaint with the scrolling is that even though there's a scroll bar in Canola, you can't use it! It's apparently just so you can get a visual idea of how many tracks there are in the list, but you can't actually scroll with it. Definitely poor design in my opinion.

The memory is plenty fast. I've got my videos encoded in MPEG4 400x272 1mbps 24fps, quality is excellent and full frame rate. The 8GB is enough space for about 8-9 feature-length movies with these settings, lower bitrate a bit and you can get more if you want. Also remember we'll have the 16GB microSDHC cards in just a few months and 32GB microSDHC by the end of the year. So by then we'll actually have more space than the new 32GB iPod touch.