So apparently from the previews of people who have the demo already... it's completely busted. It'll freeze, you'll get trapped in walls, the whole deal. There is only 2 months before release so this makes me worried. GAHH. This video shows Gamespot capturing the bugs - every time the screen fades out, it's because it froze. All I can say is wow.
EDIT: After doing some searching it looks like this is exclusive to PS3. There aren't any reports of 360 version demos having these bugs (so far at least). Wow, so this PS3 ZOE HD collection sounds gimped in multiple ways... Really hope this doesn't turn out to be as bad as Bayonetta was.