SPD DEV IN DEP PROC SID.

Narrative

WE TOOK OFF ON RWY 22L AT NEWARK AND THE TWR HAD CLRED US TO 4000 FT VERSUS 5000 FT SPECIFIED IN THE NEWARK 4 DEP. REASON BEING THAT TFC WAS HOLDING SW OF THE ARPT AT 4700 FT. THE CAPT MISSED THE COPLTS NOT CALLING FOR CLB SETTING AT 1000 FT BECAUSE HE WAS XCHKING ILS DME WITH THE HSI DME TO SEE IF THEY MATCHED. IN THE TURN WE WERE BOTH LOOKING FOR THE HOLDING TFC AND THE TCASII IN TA STARTED ANNOUNCING 'TFC; TFC.' WE NEVER SAW THE TFC AND WHEN THE COPLT RETURNED HIS SCAN TO THE INSTS HE STATED 'WHY ARE WE GOING SO FAST?' HE IMMEDIATELY RETARDED THE THROTTLES TO IDLE AND PULLED THE SPDBRAKES; SLOWING TO 250 KTS FROM 300 KTS. FACTORS CONTRIBUTING TO THE INCIDENT ARE DISTR OF THE CAPT CAUSED BY INADEQUATE KNOWLEDGE OF FLT MGMNT COMPUTER; AND STANDARD PROCS REQUIRING 2 PLTS TO SIMULTANEOUSLY FLY THE AIRPLANE. A TCASII SCREAMING 'TFC; TFC' DEMANDS ATTN AND USUALLY GETS IT. IF WE HAD SELECTED A LOWER MILEAGE SETTING ON OUR HSI THE TFC MAY NOT HAVE SEEMED SO HAZARDOUSLY CLOSE. SUPPLEMENTAL INFO FROM ACN 212652. I AS THE PF NEGLECTED TO ASK FOR A CLB MODE (VNAV OR FL CH); BUT BROUGHT FLAPS UP ON SPD SCHEDULE AND ASKED FOR AFTER TKOF CHKLIST. WE CHANGED TO DEP CTL AFTER TKOF WHEN INSTRUCTED. WE ALSO WERE MAKING 'RWY 4' TURNS TO 190 DEGS; THEN 220 DEGS. I NOTICED THAT SPD MARKER WAS NOT CORRECT AND ASKED PNF TO SET 250 BUT HE WAS BUSY WITH RADIOS AND XCHKING DME TURN POINT; SO MISSED IT. CAUSED BY POOR PROCS BY NOT CALLING FOR CLB MODE AT 1000 FT; BUT COMPLICATED BY POOR SELECTION BY EWR DEP OF A HOLDING PATTERN AT THE NORMAL DEP LEVEL OFF ALT AND DIRECTLY ON THE DEP PATTERN FLT PATH.