Multiplayer games with SmartFox very laggy/slow

I've tried a few multiplayer games with SmartFox using the Island demo and some experiments based on that level. However, the network games are very laggy and the movements slow and jittery, even if I run multiple instances and connect to localhost. I have tried the Unity networking example (without SmartFox) which works fine.

Is it normal for SmartFox implementations to be this slow and is SmartFox not meant for these types of games (with avatars running around)? Or can this be optimized in some way?

the problem has nothing to do with smartfox, the island demo only has interpolation for the player movement. If you test it in the webplayer you will see that the lag is less then in a standalone. Anyway .... indeed the demo that Thomas is working on will have interpolation and extrapolation so there will be a huge difference.