Yes, if it reclines (most have 2 positions--one more upright, and the other would be for younger babies) they can be put in it even if they are 5lbs. You can also use a head hugger pillow if she is still quite weak with her neck. And as far as the swing speeds, in my instruction booklet for our swing it says that if you put a blanket on baby's legs, and let it drape down so it's dragging on the floor, it'll slow the speed (I guess if the slowest speed is quite a bit too fast you could try the blanket trick with a heavier blanket). Hope this helped!
Whiskers