I was hesitant to root my phone and install a lag fix and/or a custom rom, thinking it wouldn't make much of a difference.
I finally rooted it (it was painfully easy), flashed a custom rom and kernel, and enabled a lag fix that came with the kernel.
Totally different phone. All I can say is DO IT. The phone is so much faster now and everything runs butter smooth, with no lag or hesitation.
This worked for me.
At first it gave me the license locked message. From another post I found an easy solution.
1. click settings,
2. applications,
3. manage applications,
4. under the "All" tab I went to "DRM protected content storage" and cleared the data.
5. I then unmounted the SD card and turned off the phone.
When I booted back up and tried Avatar it gave me a "The movie cannot be played" message. After rebooting 2 more times Avatar finally came back.