lag with version 8.1.12

I'm installing a new conserver using version 8.1.12 on Solaris2.9 using Perle
CS9032's for terminal servers.  I modified the basic example of the conserver.cf
file from the distribution to make a VERY simplified conserver implementation.

Before I start conserver, I can telnet directly to the terminal ports and it
connects to the system consoles and everything is good.  However, once I start
conserver and console to the same system console, the connection lags horribly.
It takes 5-10 seconds to echo keystrokes.  

I tried a couple different versions of conserver 8 (8.1.10, 8.0.3, etc.), and they
all experience the same lag.  When conserver is running and the ports are lagging, the
perle CS9032 lags as well.  I've never seen this issue with perle products in the past,
but I haven't used v8 conserver before.  So, I tried conserver 7.2.7 with the 
appropriate .cf file and it works fine with no lag.

The conserver log file doesn't report any errors during startup or connections.

Was there a major change between 7.2.7 and version 8 that would cause this
difference in response?  Is there an option I should configure that will address
this issue? Anyone using a similar configuration of OS, terminal server, version?

Any help would be greatly appreciated.

Thanks,
Lorne