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[DM385] ISS/VPSS PCLK and 12 to 8bit Down-Conversion

Other Parts Discussed in Thread: DM385

DM385 Champs.

Hopefully these are some quick questions. 

1) After reviewing the DM385 ISS guide its states that max pixel clock (PCLK) is 200MHz. Is it ok to use 120MHz PCLK to the CPI, this seems to be within the range. The datasheet does not explicitly what the clocks can and cannot be, does this violate any clocking constraints?

2) Our sensor's pixel is 12 bit. We are thinking of sending 12 bit to it and doing 2-point correction on the image and then reduce pixel size to 8 bit before displaying the image. Is there hardware block in the ISS or the VPSS of the DM385 to do the pixel size reduction from 12 to 8 bits?