I did a fresh frugal install of Psid 001 and before I could post about the problems they've already been solved.

Seems to be working fine now.
# glxgears
726 frames in 5.0 seconds = 145.068 FPS
733 frames in 5.0 seconds = 146.490 FPS
734 frames in 5.0 seconds = 146.667 FPS
735 frames in 5.0 seconds = 146.915 FPS
735 frames in 5.0 seconds = 146.933 FPS
779 frames in 5.0 seconds = 155.708 FPS
805 frames in 5.0 seconds = 160.787 FPS
VIDEO REPORT: Puppy Sid, version 001
Chip description:
Intel Corporation 82865G Integrated Graphics Controller
Driver used by Xorg:
intel
Video mode used by Xorg:
Resolution: Depth 24 Depth: "Display"
...the above also recorded in /tmp/report-video
#