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Yes, the music is being played through the music player, but it doesn't change much in the levels, only when you encounter battle or something. I noticed my memory issues happen on levels with scrolling layers. Other levels don't do this. I have a space shooter styled level, and it is quite simple...requires much less than the actual levels in game, but it reaches a point where I can barely control the character forcing me to quit and start again as mentioned before.
EDIT: Actually you may be onto something, because the lag gets horrible once you reach the boss in the level, and the music changes.
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Maybe try disabling all music, see what happens?