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This is a broader concern than just Joey's guide, but to answer your question:
1) Use milestones for experience, and then the larger budget doesn't factor in as a problem.
2) If you refuse to use milestones, just switch to Medium XP track so you level slower.
3) Are your players experienced? They likely won't die, especially right off the bat. My party of entirely new players has still managed to get through the first 4 books using Joey's encounters and a lot of homebrew (also using the GM's Guide to Creating Challenging Encounters).
Also, for an update for folks:
I'm almost finished with Book 5's rebuilding. I've been making a lot of Book 4 homebrew, so it hasn't been a huge priority, but the Iron Cages of Lust and the Shimmering Veils of Pride are finished.
Any chance you would be able to share your updates? My party is about to be finishing book 4 with 5 players and these conversions have been a life saver so far.
To Joey Virtue, I hate to see that yo have stopped, but I completely understand. I have loved your work thus far and thank you for all the hard work you have prevented myself and countless GMs from having to trudge through.