As opposed to full-game runs, Individual Level run times are determined by the time shown in the Dares section on the final Objectives screen that appears at the end of the Chapter (NOT NECESSARILY when all Main objectives are completed; you must wait for the Chapter to finish completely).
With this in mind, it is important to note that real time does not necessarily affect game time. The game will automatically stop the game timer in certain situations, including (but not limited to):
- Most dialogue in which you cannot move
- Switching Skylanders
- Solving a Lock Puzzle
- Playing Skystones
- Accessing menus (i.e. Auric's Shop, Persephone's Upgrades)
The following events DO NOT stop the timer:
- Driving the Conquertron in Chapter 6
- Piloting the Copter in Chapter 14
In short, when the player HUD is visible, the in-game timer is active.
Using the Time Twister Hourglass DOES NOT slow down the in-game timer.
It is best to switch Skylanders in a run while the timer is stopped, usually during dialogue or a cutscene. The delay from spawning into the map will be occupied by the cutscene, allowing you to start moving sooner when the cutscene ends.