yes, i use the same way to create my rootfs'es, though i only use the SD for 
booting, the rootfs comes from USB. 
given that most of the other devs use the exact same setup (usb is simply 
faster than SD if you complie stuff) and apparently nobody in the team sees 
these issues, i would start to suspect it has something to do with the 
underlying media. 
how do you format your SD ? what filesystem do you use ... it might also be a 
problem with the SD driver on the babbage. since we are likely to start 
building images soon i will test with different media and filesystems this week 
to see if its reproducable in different setups ...

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gnome-keyring-daemon eating 100% CPU at login in Jaunty
https://bugs.launchpad.net/bugs/328167
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