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Sorry to say, but my experience with 8.5.1 (FP1) Designer is similar as yours. Nice UI, terrific new features, a state-of the-art IDE for LotusScript (hallelujah!), but... unstable to the point that I can't seem to work productively with it.
While it's quite o.k. for me to put it aside and wait patiently for a more stable version, I do have a little concern: I'm afraid this is not a good start for anyone trying Designer for the first time - let's not forget that it is now available free of charge for everyone, which is likely to attract some inquisitive newbies. (Should I say "hopefully not too many of them" ??)
P.S.
I've been trying it on Vista SP2 32-bit standalone (no VM). One may argue that's not the best platform, but after all it appears to be a *supported* platform, according to IBM.
Feedback response number WEBB83LM5Y created by ~Tip Zekjumitexakol on 03/16/2010