this issue disappeared for me when I upgraded to Intrepid.  My guess,
given all the info available, is that the nvidia driver is the culprit.
Intrepid has a later version (unless it has since been backported to
Hardy, but I don't think it has).

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[Hardy] Xorg high CPU usage with 2.6.24 kernel and nvidia-glx
https://bugs.launchpad.net/bugs/178400
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