This article explains what, exactly, a traceroute is doing:
How does Traceroute work? - TCP/IP FAQ - Tek-Tips
That device (whatever route it is in the path), is not responding to your requests. I'm not sure how usual that is, but it won't harm anything, and it isn't slowing down your browsing.
The reason you have such a large initial delay is because the DNS record isn't in the local cache, and your computer has to request it from your ISP's DNS servers... which can take some time. You could try your luck with the OpenDNS project, it might be faster for you.