It's jumpy for me at the beginning, after awhile it finally smooths out. not sure if it's like that for everyone though.
Here's the last bit of that run. http://www.youtube.com/watch?v=vd1x1FuOf4I&feature=player_profilepage
Seemed pretty smooth near the end.
As far as I know, it's like that for everyone. It's actually quite impossible to do the first half stealth, it's often simply a matter of luck when the lags are coming. With my luck of course that's quite an impossible thin, although I think I only tried it twice... I'll try it again and will tell you my experiences in about 12 minutes
Ok, this is what I noticed: The lags are nearly (But only nearly gone) after about 2/3 of the track. From minute 10 on, I actually didn't get any more lags at all. There doesn't seem to be a reason for the lags, but they appear far more often when you move faster. Actually, wildly shaking your mouse almost makes the track stop until about 50%. The first half seems also to completely ignore the physics, I've hit several Blocks, colours AND Grays, which I could never have hit with my movement. I believe as soon as the lag appears, it assumes you continued the last registred movement at the same speed, which in that case could have been enough to hit the blocks. I also saw blocks I evaded a second before the hit, but still collected them.
More strangely is even that some blocks I did hit I didn't collect. Tried that actually on the middle track, I always skipped from the right lane to the left and opposite, I actually saw the ship ON the Block, right at the point where it was, but I didn't collect it.
The last quarter is actually quite possible, however the lags still appear. I caught 5 Blocks during the last 5 minutes, only 2 of them were my fault, the others were lags. The last 2 minutes were completely lag free, however I focused on playing more smoothly there, which tended to work. I think I could stealth it in about 10-20 tries, if there only were no lags. The speed is fast, however it is constant, always the same speed which combined with audiovisual indicators increases your reflexes. If you have fast reflexes, it should actually be quite easy as long as the lags don't happen.
So, in conclusion: Silent Death is overrated. The Only problem is the lagging which make the first ~6 minutes nearly impossible to stealth. I have much more problems with "The State - Claustrophobia".