My template will not compile due it's a vaild Velocity template?

Maybe you are using some Velocity directives which are not implemented in velocity2js yet. Please take a look at Writing Templates in the user guide. If you are thinking it should work, do not hesitate to post a comment in the velocity2js Forum.

Does velocity2js use any JS frameworks?

No, velocity2js is js framework independent. You can use you favorite framework.
Take a look at the Yahoo! UI Library - Example to see how to use velocity2js with YUI.

How can I escape '#' and '$'?

Escape special character like '$' and '#' with an leading '\'.

eg.  <td style="color: \#cecece">