thanks for the profile logs.
profiling explanation
the profiling measures which code sections take how long to execcute over a 30 second period, and then outputs the results, resets itself and repeats.
it measures the total cpu time spent during the 30 seconds :
=== MyProfilerTop cpu time === 
it also measures what happens when the game lags/hangs during a frame : 
1336312 === MyProfilerTop tspike (single sections causing delays/lags) ===
1336312 === MyProfilerTop tspikeframe (the summed cpu usage of all things during delay/lag-frames) === 
(first = only the sections that cause the lag, second : what is happening in total during lagframes)
it also measures memory allocations for lua and ogre(3D), but those aren't important here
1426328 === MyProfilerTop memLua allocations === 
1426328 === MyProfilerTop memOgre allocations === 
interpretation : how i'd interpret the results from the measurements you posted   :
Quote:
-running in britain town - 
1066312 === MyProfilerTop cpu time === 
 #2      2225msec ( 33%)         2D:MainStep:MapStep
 #3      1910msec ( 28%)         2D:MainStep:walk
 #4      1016msec ( 15%)          Walk:BlendOutLayersAbovePlayer:setvis
 #5      1014msec ( 15%)        MainStep:SetToolTipSubject
 #6       785msec ( 11%)        MainStep:Hook_HUDStep
 #7       748msec ( 11%)          2D:MobileStep:UpdateMobileGfx:Build 
1066312 === MyProfilerTop tspike (single sections causing delays/lags) === 
 #2       594msec        2D:MainStep:walk
 #3       499msec         Walk:BlendOutLayersAbovePlayer:setvis 
so here walking seems to have a rather high impact.
this doesn't neccessarily mean the code is wrong, 
as there are a lot of objects in cities to calculate for walking. 
Quote:
-walking in britain town, different path - 
1846375 === MyProfilerTop cpu time ===
 #2      3486msec ( 49%)         2D:MainStep:MobileStep
 #3      1316msec ( 18%)          2D:MobileStep:UpdateMobileGfx:Build
 #4      1092msec ( 15%)         2D:MainStep:walk
 #5      1001msec ( 14%)          2D:MobileStep:UpdateMobileGfx:Clear
 #6       795msec ( 11%)         2D:MainStep:MapStep
 #7       592msec (  8%)        MainStep:SetToolTipSubject
 #8       501msec (  7%)          Walk:BlendOutLayersAbovePlayer:setvis 
1846375 === MyProfilerTop tspike (single sections causing delays/lags) === 
 #2       313msec        2D:MainStep:walk
 #3       298msec         Walk:BlendOutLayersAbovePlayer:setvis 
here MobileStep eats a lot of performance, that  means loading lots of new mobile clothing/graphics and/or wait times due to the memory bandwidth to GPU being exhausted : loading all the new terrain, buildings and items could mean there's no bandwidth left for loading the mobile clothing, so there are waittimes while animating/loading them.
Walk code is also a factor, like before.
could you repeat the 
-running in chairs test, 700 items - 
test please ? 
start when one such profile-list is printed, then run around for 30 seconds until the next profile-list is printed and paste that later list here.
also note if you have overall bad framerate, or if there are short hangs.