hmmmm..
k...god i wish i knew what could be causing your lag/jagginess...
the first things that come to my mind..are:
refresh rate or your monitor?? what is it?
what's your video adapter color depth set to?? 32 or even 24 bit might be overkill ..bring it down to 16bit or 65k ..that might help..
stop all services that you can - i noticed that you had some prog's in your systray.... how about antivirus software???
does your active desktop require a resync at all at startup?? does it get anything off of the net?
possible also updating drivers, direct x or vid card.. also, do you have indexing services activated aka "FINDfast", that might be bogging your system down..
food for thought..let me know what you come up with..and btw...it does look pretty cool....
didnt notice anything really akward about your html code.... but then again..im no exoert either..lol
~n