The Flex 3 will only produce a 1-bit image, that is how we get the data rates so low with the high frame rate. It is possible to "create" a grey scale image by moving the threshould one value at a time and recording the image, to create a composite image, but that takes 256 frames to do. It actually works very well for testing image focus.
For interpolation, we find that the simple 1-bit image is pretty good when you use a nice circle fitting algorithm, or something similar to find the center points.
We are considering having full grey scale in our next camera version, but that won't be for some time.