I am using AutoCAD2014LT. When i try to use the hatch or gradient commands to fill spaces my cursor "jerks" around the drawing and freezes for a minute or more. When I try to move the cursor again it does the same thing. No issues with any other commands.

Do you have osnaps enabled for hatch patterns?

Hi John. Once again, you're the man. I turned off osnaps and now I can hatch again. I didn't know osnaps should be turned off for hatching and grading. The issue only showed up on larger drawings. Thank you so much.

I did not say turn off Osnaps altogether.Options > Drafting tab > Object snap options > Ignore hatch objects (make sure this is enabled).