I've been hacking today trying to get the Android version to work better. I've made some changes to the way the display scaling is calculated, which will hopefully fit the width properly on most phones, and allow for user scaling, too. Please let me know if it doesn't work on your Android phone.
I've also been investigating some freezing/crashing reports. The version of Flash player available to me, though, has a pretty horrific bug which causes rendering to stop as long as you're not touching the screen. It happens at random, but pretty often. The most obvious sign would be you'd finish writing a character, take your finger off, and the character (or last stroke) would start animating into its final position but never finish it. I haven't been able to find a workaround yet, but I'm trying to get in touch with support. I think this bug is fixed in Flash Player 11, but that's not available yet. Hopefully it'll be released soon.
I've also made some changes to get some possible hardware acceleration going on, in both the desktop and mobile versions, so please keep an eye out for general graphics performance and let me know if you see an improvement.
I've made the demo page more functional on Android, but we're going to have to redo a lot of things to get it working fully, as we can't put bubbles on top of Flash on Android 2.x.
Still no hints at a workaround that would let drawing be more responsive; it seems that there's no way to prevent the browser from delaying the touch events before delivering them to Flash.
Haven't been able to get to the reports of connection issues yet.