Same thing here takes almost all of 1 core on a 4 core machine running
fully updated lucid

1044 root      20   0  349M 47652 16204 R 94.0  0.8  9h35:51 /usr/bin/X
:0 -nr -verbose -auth /var/run/gdm/auth-for-gdm-qi3inD/database
-nolisten tcp vt7

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System sluggish and 100% CPU in guest session
https://bugs.launchpad.net/bugs/452239
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