Yeah, I had the same problem when connecting to remote HTTP server, especially when FrontPage extensions were turned on. And eventually, after one ASPX page had a lot of code, "1000+ lines" it was slow when I typed. So I could type a whole line of text, but it would take 1 - 2 minutes to display on my screen.
Personally, I upgraded to Visual Studio Professional (way worth the cost) and develop locally on my system. That way, everything is oober fast, and there's only a few things you need to change when going into production (connection strings, etc).
If you design your site with this in mind, (using realative URI's like, ~/images/button.jpg) it's real simple.
I struggled with VWD's performance issues for a while. Now, developing locally, then transfering to a production server makes much more sense to me.