I turned off transition animation scale, AND window animation scale. I was still noticing some lag. I then changed 'background process limit' to NO background processes and my phone is finally acting like quick and speedy. Not sure what background process thing does exactly, but I could not handle 20-30 second delays opening apps.
Careful, because what you just did is completely disable multitasking. Which may be fine for the way you use the phone, but if you start to have issues switching between apps and such, try setting it to a slightly higher number than zero.
BTW my transition and window animation scales were both set to 1 by default. Wonder how they are getting set higher in the first place? Good catch though, I will add this to my list of checks when people complain about ICS being slow.