I blinked and missed the CyanogenMod 9 Alpha 1 release earlier this week, whose major excitement was to fix hardware accelerated video (so MX Video Player and the like can play H.264 720p videos OK now). Not to rest on their laurels, the CM crew rapidly followed up with an Alpha 2 release, which fixed some other video playback issues.
As usual, there's a RootzWiki page on the release and I've installed CM9 Alpha 2 successfully on my TouchPad without any issues.
Update: GTA III 1.3 works fine on CM 9 Alpha 2, but Google spectacularly broke Chrome Beta with their latest update to it (24th Feb release - version 0.16.4215.215). It now wrongly reports that CM9 isn't Android 4 and refuses to run! I had to roll back to an earlier .apk file (0.16.4130.199 version) to get Chrome Beta to work again.