Disclaimer: This combination is what I had found best suited on my device for my personal usage. It may or may not be the best for you. Kernels and ROMs are always being updated so as usual, it is only correct as per the time of my publishing.
The combination which works for me (and having my O2Jam Analog works flawlessly is as below...
ROM: Juwe Smart Edition v5.2 (http://forum.xda-developers.com/showthread.php?t=964672) - Install the WIPE version, backup using Titanium first ok
Kernel: Semaphore v1.5.0 (http://forum.xda-developers.com/showthread.php?t=1112908) - Overwrite the Kernel.
Tweaks (Use the app called TWEAKS once installed Juwe)
i) Enable RAM: Min-Free
ii) Disable VM: Swappiness
iii) Disable VM: Dirty Read
iv) Enable Touchscreen: Sensitivity
For launcher, I would recommend to get Go Launcher EX. Simply because all the required widgets are all running behing Go Launcher itself - the system need not allocate additional memory for different apps from different vendors.
My test of sensitivity, microlags and memory is all from the game O2Jam Analog. This music-sync game requires certain levels of precision and any lag would render the music goes out of sync and throws your game off altogether. It's in Korean though - go google over it if you're interested.
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