Nevermind what I said. I had a few minutes to look at your files. The effect was being "weird" because you had rotozoom set to something other than none. This was making things look weird. I set rotozoom to none and it's working like I would expect. Again, I'm not seeing long render times. I would post your computer specs. Maybe it's time for an upgrade.
I thought I turned Rotozoom off. When placing effects on the grid, it seems to remember the last Rotozoom setting used, sort of like how the Fade In/Out Transitions seem to be remembered.
The computer is hardly impressive. According to Windows 7, it has:
AMD Turion 62 Mobile Technology TL-60 2.00 GHz
4 GB of RAM (3.19 usable)
According to the Windows Experience Index:
The Processor has a score of 4.7
Memory has a score of 6.1
Graphics is 3.5
Gaming graphics: 3.2
Knowing it's not the fastest, I would understand that rendering an entire sequence would take a while, but a render of one effect would take mere seconds--not a minute or so.
I had a PC upgrade in mind, but thought that I'd hold off for this year, and wait until the sophistication of my sequencing would make my CPU struggle with layering, morphing, and Roto-Zooming all combined.