I had the same problem on a Toshiba Portege 3480CT, same RAM. I am
running a minimal Xubuntu.

I have noticed that:

- startup was slow too, so it is not something related to X

- processor usage was at 100% even doing nothing!!

- old feisty kernel was ok, so it was the kernel somehow

I can confirm I have installed hardy kernel ( 2.6.24-16.30 ) and it is
ok now.


Not as fast as feisty, but at least as quick as gutsy with feisty kernel 
(that's 15x faster than gutsy standard, on this macine!!).

In general feisty seemed quicker, and processore usage was less on the 100% 
side, but it probably did less things, maybe with the low RAM this laptop has 
(can not upgrade more!!) it has reached its limit.
In gutsy just moving a window brings processor usage up to 100% until I release 
it (and I have also removed background image).
Apps start quick and system is responsive, I think it is just XFCE that is 
heavier than older versions.

-- 
Xubuntu Gutsy release candidate very slow
https://bugs.launchpad.net/bugs/152477
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