Since the start of having this T07 4GB model I had issues it being extremely slow. After flashing the new boot image there was still no difference, with my T07 running at maximum 0.48GHz (after a minute or so).
But thanks to shadowninjazx, he suggested that it was a thermal issue. After checking with the program called RealTemp, it showed it was constantly running around 85 degrees. So I decided to open up the device and check it.
As I found out, under the blue conductive pad, there was no cutout in the double sided tape! I have put some heatsink on the pad on both sides and cut out a part of the double sided tape and re-assmbled it. Now the CPU is running constanly around 1.5GHz - 1.6GHZ, even though the temperature is still around 80 degrees the stick now works properly for me!
Hope this information helps for others too.