I changed it to using hiearchy and it did help a little, the lag of the text input object is not so bad but its still noticeable. This doesnt happen with sprites or any other obj just text input object. Also I need access to the link you posted I cant see the example.
Also would you know how to create the events correctly using the touch. I keep trying to get it to work and it just creates even bigger lag with the input box then what I had before.
// On touch object card - set position touch.x and touch.y // this is what im doing and makes it worse