Every time something happens or even if I move the mouse around, the entire game lags/for about a second then proceeds. Except for when walking where it lags every other second! What the heck is wrong?! it's really ruining the game for me.

Are you running anti-virus software (particularly AVG)? If so, try disabling it. Remember, of course, to reenable it after playing.

If that doesn't work, let me know, and I'll try to figure out other options.

I can confirm this. DIsabling AVG worked wonders for me. It was starting to frustrate me how a point-and-click adventure actually lags on me when a full blown FPS game doesn't.

Anyway, disable AVG. Tray icon > Temporarily disable AVG protection > Until restart. After playing, same procedure to re-enable it.

Similarly, disabling Avast improved things for me. Strange, because I told it to exclude the Primordia folder.