Typing is very slow when folding is enabled in Vim 7.3

I upgraded to Vim 7.3 and notice an issue when when folding is
enabled. There is considerable lag when typing, such that when I am
typing quickly, I can finish a whole sentence before it even appears
on the screen!

I typically only use folding for PHP files, and so I'm only noticing
this issue when editing large PHP files, i.e. 1800 lines. Smaller PHP
files (300 lines) there doesn't appear to be much noticeable lag.

This is what folding settings I have in my vimrc:

autocmd Filetype * :set nofoldenable
autocmd Filetype php :set foldenable
set foldmethod=indent
set foldlevelstart=1
set foldopen-=search
set foldopen-=undo
let php_folding = 2

I still have Vim 7.2 installed, and so swapping between both versions
I can see the difference in speed and it is quite dramatic when
editing large PHP files.

Is anyone else able to replicate this issue, or know what changes to
my settings could fix the problem.

thanks

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