I would still like to know if anyone has any thoughts on why this type of data connection so significantly decreases performance...but I came up with a half workaround by completely eliminating the data connection.
Here was my formula to generate a random number.
Step 1: number(concat(substring(string(today()), 6, 2), substring(string(today()), 9, 2)))
This formula will return the month and day so 3-06-2012 is returned as a number (not a date) as 306.
Step 2: string-length(CreatedBy) * Step 1
This formula multipled the previous monthday number by the number of characters in someone's name.
I then would have to save the file by the new form number + now().
I'm going to keep working on Step 2 to perhaps multiply that number by another field of random length so that the same person on the same day won't have duplicate form numbers.
Any ideas?