Smooth scrolling works, but interferes with another cool feature.
Unread notes have a reddish background. On mouseover, the reddish tint goes away, as if the note is marked as read.
When I start the smooth scrolling, the mouseover won't mark notes as read anymore, until the scrolling completely finishes. So mouse wheel up, wait 2-3 seconds until scrolling stops, then mouseover will mark notes as read.
How I work around it is: instead of normal scrolling, I "drag" the list. I click and hold, move cursor up or down, release click. Voila, the list scrolled and "mark as read" works instantly.