I am having the same problem except that my system crashes every time I try to create an instance.
After a lot of experimenting I conclude that it simply won't cope with the quantity of rules (60) I have during CREATE OBJECT.
Like yourself, I removed some rules and the problem disappeared. I now have permanently removed rules which are not absolutely necessary to dynamically update fields during CREATE and the problem stayed away.
However, still needing those rules to "Calculate" my record fields, I put those rules into form operations ("(Re)calculate Record") which I then use when I recall the instance (in edit/view).
Works just fine (recalculates in a micro-sec) - no more crashes, no more slow running during CREATE.
Doesn't solve the dynamic update problem, maybe it's my bsv or rules, but I can't find any other way to make it work consistently.
I still note however that shortcuts take 5-10 secs to appear! Could this be the same issue?