It is fixed, and it's just not working for you. (moving this to the tech help forum)
For the most part, it works quite smoothly now. If you manage to lag it badly, it can't seem to recover and it produces the effect you're talking about. Rhad still needs to work on this thing. That being said, it should be more or less fine now, most of the time.
If you're on Windows 98, then chances are you might just have a slow computer that can barely handle the game. Please post your system specs, namely your CPU, graphics card, RAM, etc.