Ugh... had to Factory Reset my phone to fix the problem, but it worked. At least I got rid of a few unnecessary things. I am also noticing that the 2.1 updated items are now running more fluidly than before. Only thing I am noticing is that the scrolling is a bit sluggish, but its barely noticeable at all. Just looks like it slowly gets up to speed, so it almost looks like it is on purpose.
If you are about to upgrade, or haven't done so, yet, I'd suggest doing it manually. I did mine manually and my friend updated hers via OTA, and its the same thing. No sense in waiting if you don't have to. However, if you want to maximize performance, it might be best to do a reset before upgrading, because some of the old might have issues with the new put on top of it.