I love it; it's a beautiful name. I don't think you should worry about the word connections-lots of names can be twisted to sound bad.
To answer your second question, I don't really feel like it fits in with
Scarlett and
Malcolm.
Scarlett can feel classic to some people, but to me, it fits more in the "dramatic classic" category.
Malcolm is very classic and solid, and does not fit with either of these names,IMO.