I meant to mention:
a) running the same netstat command in a console works fine
b) new users are also affected by it
c) enabling or disabling compiz has no affect
d) using different themes has no affect
e) doing the same thing on another Jaunty system (64-bit with Intel graphics) 
does not have the problem (ie CPU usage does not increase at all)

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High CPU usage when showing text in gnome-terminal
https://bugs.launchpad.net/bugs/313490
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