I talked to a sales lady at my local apple dealer (Micro Center) and she said there are some optimizers out on the net that can optimize VPC even more with the Altivec engine. Since this is coming from a sales person, who seemed to know quite a lot about macs, I don't have any sources of where to find these optimizations, but it's worth a shot to search for them. (I have run VPC 5 on my iBook G3 500 and it works fine... not very fast, but it was good enough for me to run 98 and my dos programs. I can even play that pinball game without a glitch.)
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