Some more details.

First.
The problem seems to arise actually from the interaction between 
KNetworkManager (front end) and the NetworkManager
(back end).
The CPU goes 100% when KNetworkManager is not running or has been 
killed/closed. This seems to be "fixed" by restarting the KNetworkManager as 
shown by Serkan Hosca.

Second.
While NetworkManager is correctly bringing up my ethernet as required, 
KNetworkManager (v0.2) incorrectly says the cable is unplugged.

-- 
[GUTSY] NetworkManager eating 100% CPU time
https://bugs.launchpad.net/bugs/154762
You received this bug notification because you are a member of Kubuntu
Team, which is a bug contact for knetworkmanager in ubuntu.

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