It would be a question to ask to http://www.instantobjects.org/#newsgroups or to IO authors directly.
You have some structure diagrams at http://www.instantobjects.org/diagrams.html
The included IOHelp.chm file has a lot of useful information.
IO has no official release since 2006. But the SVN version at sourceforge has support for Delphi 2010. I suggest you get this updated version first.
About performance Improvement, did you use the StartTransaction/CommitTransaction methods of your TInstantConnector instance? It could have a big performance improvement in writing.
About reading, I didn't find any caching mechanism of data in the source code (after a quick review - but I could have missed something). But there is a statement cache included, which is not enabled by default. See the Statement_Cache.txt file in the Docs
You could take a look at other ORM frameworks for Delphi, you've a list at http://stackoverflow.com/questions/422426/orm-for-delphi-win32
I should of course recommend ours: http://synopse.info/forum/viewforum.php?id=2 which has caching of both statements and data implement. :)