Most of the interview street problems seem to be tested in a way that will verify that you have found an algorithm with the right big O complexity rather than that you have coded the solution in the most optimal way possible.
In other words if you are failing some of the test cases due to running out of time the problem is likely that you need to figure out a solution with lower algorithmic complexity rather than micro-optimize the algorithm you have. This is why they generally state that N can be quite large.
