Thank you for your info. It should prove useful to others.
Windows 7 has a slew of problems with 1394 drivers. There are a fair number of complaints about slow transfer via 1394 with windows 7 (typically noticed with external 1394 drives). Usually getting the right drivers (not the windows default ones helps solve it) or switching to "legacy" drivers as OP says has fixed it for some folks as well.
I had almost forgotten I posted that back in november or december, but reading your post it all came back to me. Glad that simple solution helped.
posted here by mistake