Hi Raymond,
Yes - your machine should be capable. I would suspect then either an interfering software (anti-virus scanner, etc. or similar from the school), outdated driver(s) or a need for a reinstall. Can you run the software in administrator mode and see if it still lags?
Does file size or complexity matter? Can you run the command with a single part in the assembly but not when it is the full assembly for example? Does it fail on multiple parts? Are the parts older parts that have been upgraded or were they made in the current version? Are the parts and files local to the machine or across a network?
Does it work from the student stations? I found that as a teacher, my login loaded more "junk" than the students in the background. Sometimes I would log in as a student to do tasks for faster load/login, etc. (plus not having to worry about leaving my station up as I worked with students).
I used to do the step-by-step method; it was my preferred method, too. If you know a common hang, a work-around is to have two versions of your project open (in two separate Inventors). A pre command and a post command; if the demo works, you keep going. If it hangs, you jump to the second running version of Inventor and carry on. LOL (I used to do this with Max all the time to save the class time). Not a solution to the situation, but a Band-Aid.
Just bouncing some thoughts around in the hopes of hitting something that helps...
Kenny