Am I understanding this correctly, Basically 1GH is running the Cryptonite network? It looks like that pool solves almost every block. Seems like a nice pool but this strikes me as a big problem.

I know Bitfreak had doubts that p2pool could work with XCN but if there is any technical way (totally above my head) to make it work then that seems like it would be the best solution. I don't understand the technicalities of implementing the system but Cryptonite has seemed much more likely to be able to adopt the more decentralized pooling system (as apposed to Bitcoin) from an end user point of view because the blockchain is so much more manageable.

This pool issue is something which needs to be rectified and I'd hope someone smarter than myself could make that solution be p2pool.