Summary
Removed livequery calls and replaced them with standard jQuery bindings. Added binding after Ajax and unbinding before Ajax.
Script
Select "File_1", then after it loads, select "File_2". Much faster, but still a delay. Lastly, select "Select File". Again, another delay. So it seems that not using livequery speeds up the lag caused by "removing" the data and unbinding events. Clicking "jQuery Profiling" to return to the main page, still the same delay.