Upgraded my HTC Hero to the latest HTC update which resolved most of the lag issues (yes it does lag sometime on heavy use which is normal for a multitasking OS I suppose) via the Modaco custom ROM which is pretty awesome. You can get it from here as well. http://android.modaco.com/content/htc-hero-hero-modaco-com/292018/04-09-2-0-the-modaco-custom-rom-is-here-2-versions-based-on-the-new-update/
I did have some issues with certain apps though which a reinstall fixed after applying this update. However my clock widget is not displaying weather anymore and I cleared the cache as well. I will update once I find a fix for it.