Can I do anything with settings to get it right?
No, it needs to be fixed in the CHDK code. It looks like there are two things missing:
1) The bitmap palette for the UI colors
2) The viewfinder size and offsets. These might change depending on the aspect ration selected on the camera, so you may be able to find one that looks better.
If you can create a "quick dump" from the debug tab, that may make it easier for us to fix.
2nd question, can I flip the viewfinder left-to-right? It's easier to use a mirror image when I turn the camera to me.
Not currently. It would probably be fairly straightforward to do in code.