We have been doing extensive testing on various firmware and device combinations over the past week and have found that the latest firmware (iOS4) has some serious performance issues that were not present in iPhone OS 3.x
For those using iOS4, one of the most important things you can do to improve the performance of Live Cams is to double-tap the home key of your device, then press and hold one of the icons that appear in the lower tray. This will show all of the icons for the background tasks with little red minus signs next to them. Remove each of the icons until all that you have left is Live Cams.
|Remove background tasks on iOS4 to improve performance|