I have the same problem as steve hardy pointed 2 posts above:

With remote desktop enabled (vino server running), once a remote connection is 
established (using TightVNC viewer on the client), xorg on the server consumes 
about 50-60% of the CPU cycles (there is no further degradation).
Once the connection is dropped, xorg goes back to its usual < 10%.

Server setup:
Ubuntu Gutsy as released (will try updates asap)
Celeron 2.5GHz
512MB RAM
Intel 845GV chipset
i810 graphics driver
LCD panel 1024x768
100 Mbps LAN

There are no pulsating icons on the desktop.

Should a separate bug report be opened?

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when vino is running for several hours, performance degrades, making xorg to 
eat up cpu usage
https://bugs.launchpad.net/bugs/125179
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