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Your player has an 80 MHz CPU from the early 90s, so if you're trying to decode an expensive format, using lots of EQ bands, etc you're going to max out the CPU pretty quickly. Not much you can do about that.
MP3 actually uses both cores for decoding, but the UI does not. Each EQ band will use several additional MHz. I'm not sure about PBE. Does the problem go away if you turn off those effects?
Try using fewer EQ bands?
5th gens seem to just be slow. If you're using an iFlash adaptor, maybe you have a lot of tracks, and the 5th gen seems to struggle with that (possibly it depends whether it's the 32mb ram or 64mb ram model? I haven't really tested whether there's a difference there).7th gens seem to be much more responsive when used with an iFlash.
Do you still have the problem with the current dev build? Could be related to the flash storage you're using.
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