Me and My Family also have this problem. We can move just fine anywhere else in the game but we hit Village of Sorrows and we lag lock. can't move the music gets stuck in a loop and actually freeze up. This seems to be a recent problem as we didn't alway have problems here. I have no idea what is causing it but I wish they would fix it. all we can do is play other charaters at this time as the village of sorrow quests are all we have to do. We finished everything else and can't progress without these quests.
It did happen to me. I sent an email to Support and they asked for a DxDiag report. After I sent the report, they said my RAM was low. I upgraded my memory and now it's fine. You might want to contact support. Hope this helped.