I can confirm that this is a SMP related issue.  I re-built my kernel
with the only differences being that I changed my CPU to a Pentium-M,
turned off SMP, and modified the ticks to 250/sec.

Performance is back to that of Breezy on my Celeron-M 1.4Ghz laptop, and
I don't think its the different CPU settings, or the scheduler.
Interactivity, especially while in a terminal is also much improved.

-- 
cpu idle time in /proc/stat wrong
https://launchpad.net/bugs/30557

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