This is normal, that's just After Effects, it's not Vegas Pro.
When you click on RAM Preview (if you don't know what is is, do a search about it.) you get a nice realtime view on things. And after you pressed ram preview, it will render in the project itself.
Even with the best computers (like mine) it's still laggy when you do a playback. Pressing spacebar plays the scene laggy and chubby. Even though that's minor point to after effects, think about it what you can create with it. After Effects = Awesome!
Hope I was of any help.
> and really quick dont come back with a "Go read the manuals"
Actually, that is the best advice.
I strongly recommend that you start here to learn After Effects: http://adobe.ly/bjBT3P
If you do begin at the beginning and go through those materials, you'll learn how to do things like preview your compositions, as well as many other crucial basic skills.
Every where i have read it says that its because its not rendered, but how do i edit the video without it being slow mo?!?!
You don't edit video in AE, you do compositing and that solely determines its functionality. Even if it were able to play back one or 2 footage layers without issues, that soon enough would fail if only you applied enough computing intense effects and that is the whole point: AE is meant to do effects processing. That aside, you need to render stuff in Vegas or premiere as well, if you apply effects that can't be calculated and rendered on the fly...