I also found that it takes about 2 seconds for the page to display a single thing (I'm assuming its cause its the lookup that is taking the longest) http://www.webpagetest.org/result/120613_QC_833b06d5bbdf38bafcff8ed2777be8ac/
How could I improve this, or get rid of the 2 second lag?
I am hosting this on Heroku, and DNS is setup in GoDaddy.
DNS is not your problem.
Take a closer look at your network waterfall chart. Your application.js file is your first performance culprit. If you can:
With that out of the way, your background is your next biggest problem - it's massive. Perhaps its worth reconsidering if it should be there if you're really concerned about speed.