strange....
CREATESCREEN works pretty nice on extracly that device here (HTC Desire HD with Android 2.3.5), also with v11 Beta. Its mightbeen different models of same phone? Howover Greedy Mouse did run too slow (but its was just a quick offbuffer test, so speed was not about it). Its use Android 2.3.5 as version number here.
I gonna thinks do you using a fixed sprite number or GENSPRITE()? I did that with GENSPRÍTE(). Mightbeen CREATESCREEN have trouble with fixed sprite number?
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I also tested with bigger resoulution than the screen (double resolution) and its still works nice (dispite alpha issues due wrong blendmode, not to been debated here). I so property, its a "out of memory" issue?