First of all, it is not unusual for a VI to be much smaller in version 8.0 or 8.2 than it was in 7.1. In version 8.0, we implemented a new format for saved VIs that included a new form of compression, and that caused the size of typical VIs to decrease 55%. (VIs saved in LLBs decreased approximately 20%.) Obviously, you're seeing a bigger savings than the typical case. Without seeing the huge VI, I won't be able to tell you why it's so much smaller.
As for the performance problems you see, I can't say what's happening without looking at the VI. I have not heard of this problem before. It sounds like one of the algorithms we run over your VI on most editing operations got more complex, but I don't know which one. Is there any way you could make the big VI available?