ok i think i figured this out myself.
You cant get the colorized dmd into a smaller lcd due to the way that the colordmd does its interpretation. You'd have to intercept the colordmd to lcd signal to grab the colorized pixels. :\
You can still do it but the small lcd would be the first in the daisy chain and would thus be monochrome and not a smaller version of the colordmd.
booearns.
