The guide is really helpful, got pretty far going from start, and actually did really well later on.
http://armorgames.com/guide/empire-island-game-guide
They need to spawn on the EDGE of the map, not in the middle. Spawning them near the middle almost always ensures that at least one in a few shoots at my base before turning to face one of the 20 ships I have flying around. Makes the later levels IMPOSSIBLE. Even with rank 20.
Too many "for" loops in your programming tends to cause lag like this. :P Try to find a way to reduce them or make them more efficient. Sometimes just doing one after another creates less load than using a "for" loop once.
Try increasing the friction, and increasing the acceleration gained when the player "moves". That might help some, and stop it from feeling like you're walking on ice. As for the player, at least add some "feet" so I can tell where I should put myself.