Jeff,
Hardy Alpha has an updated version of the kernel that you may want try.
Not sure if it will help improve your situation though.
http://www.ubuntu.com/testing. Also I'm not sure which version of
vmware you are running, but you may want to see if there is an updated
version available to test with as well. But for now this report will be
closed. Thanks.
** Changed in: linux-source-2.6.22 (Ubuntu)
Status: New => Won't Fix
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Performance issue with High Resolution Timer enabled kernel
https://bugs.launchpad.net/bugs/183879
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