Super laggy for me as well.
Beat the first level with about 18 seconds on the clock. Took me maybe 3 minutes. I have Flash 11 and hardware acceleration is enabled. Not sure what it is about this game that needs the fancy new GPU features. Could've just made it the old fashioned way.
I love you JAZZA, but you gotta talk to Moonkey about making games for everybody, not just people with fast computers. I don't think the quality of this game would've suffered at all had it been done with a much lower frame rate. For me personally, anything above 16 FPS looks as fluid as anything else. And there are ways of just plain coding better to make things run faster. Of course I don't know what frame rate it's running at or how it's coded, but clearly something is wrong here.