I see about 5.1% to 5.5% now. How is it that I am making more compared to a pool with 1% fee but very low rejects? Because on a normal pool I get 0.3% rejects only? Wouldnt that mean I would make 4% more on a normal pool?
With p2pool the absolute number doesn't matter, only in comparison to the pool average value. This is because rejected shares could still solve a bitcoin block. When you are mining on p2pool you are essentially working on two "block" chains, the bitcoin one and the p2pool sharechain. A share can be valid for bitcoin but not necessarily for p2pool.