Ubuntu Multimedia :: Compiz Annotate Tool Lags Badly During Screencast?

I use an online screencasting java applet called screencast-o-matic to record my screen. While recording, I use Compiz's annotation tool. Normally this tool works great, but for some reason while I'm recording, it gets very laggy (drawing is way behind the mouse movements) and less smooth. For example, drawing a circle at a quicker pace not only causes lag, but also makes the circle look more like a polygon with straight lines. While this is happening, my CPU also spikes, with large strains showing up on the java process. I'm running Ubuntu 11.04 with an intel i7 processor. Any ideas as to why annotation lags badly while screencasting, and any ways to fix it.