OP here with some answers. Yes, the flash duration is in the 1/500 or faster zone which is still not really fast enough to freeze action but is not bad either. I shoot available light at 1/640 and that isn't really fast enough either. The real issue is #2 (above) where the 1/250 sync speed allows ambient light to add motion blur, especially when the players are hunched over a bit and shielded from the bounce light.
Direct flash - I can and have done it but the uniforms have reflective strips which glow. I also get red eye. I did an experiment last week shooting high speed sync at 1/500 or faster. It worked and I got the flash to give a nice fill but every shot was suddenly out of focus. Same lens, same body, suddenly couldn't keep up with the movement. I wonder if the additional processing load on the camera's CPU had an impact on its ability to run the focus tracking algorithm.
Our gym is small. No balcany, no upper level seats. The best would be the side rails on the bleachers. I'd prefer a portable system so I can switch ends of the gym between halves and so I can shoot in other gymns.
Ya know, 4 580EX-II ganged together on some bracket may be just the thing 