I had a similar problem with typing slow in IE 7 when I opened a popup window. However, the editor would type fast if it was the parent object. Which means that is it probably looking at the parent opener object to do some kind of parsing. So in popup window right before the closing body and html tag I set window.opener=null and works fast even with the
ConvertHTMLTagstoLowercase
="true" ShowTagSelector="true"
enable. Try it out on yours, hope it helps.
I was pulling my hair on this one.
Greg