Hello & welcome, Razor512 !
is there a way to get the dead pixel data to work while recording video?
No; CHDK can remove/unmask bad pixels only on still images, but not on videos...
I just wish there were more options to improve video quality
Since the A560 uses the "old" MPEG video format, you may get slightly better videos with CHDK's video overrides; for high quality you'll have to use a fast SD card then...