I'm glad to hear there's been an improvement.
I just bought the first episode on WiiWare to share the experience with some of my younger siblings - needless to say it was a disappointment. Some of the jokes didn't even make any sense because of the choppy frame rate (for example, when Guybrush punches the first pirate he meets on Flotsam, it happens so fast that the frames can't keep up and an absolutely hilarious moment is lost). Another problem was the size of the dialogue text; it was far too small to read, and more of the game's excellent humor was lost. What should have been a fun family experience quickly became wearisome. I'm a fan of TTG, and I want to support them, but for the first time, I actually felt regret after buying the WiiWare version of TMI: Launch of the Screaming Narwhal. I paid more, but received less (than the PC version).
Any chance the first episode will be re-released on WiiWare with better frame rates? And why does Nintendo require such a small file size?