Well, I have played Story mode on me RGH (from the internal HDD) which played normally.
However, between auto saves (it saved to a USB drive) it lagged out.
This isn't Telltales first game to experience bugs.
I know for a fact that A Wolf Among us is even worse (lags all the time but stops lagging if you let it pause for a couple of minutes)
Batman from Telltale just keeps on reloading the first sequence for me and Tales of the Borderlands won't progress past the first chapter.
I highly recommend getting an internal HDD (I don't think your machine is RGH'd or JTAG'd) so you could hack a WD Scorpio blue drive (320GB) with hddhackr, or get a cheapo used one from gamestop.
Edit: installing games to the harddrive will significately reduce DVD drive noise and speed up loading times (as well as improve save times)