i have the same problem , but for me it appeared only since i upgraded
to 9.04 . i have vmware player running from a ext4 partition running on
a encrypted partition (the same behavior is true also with vmware
server). When a lot of disk activity starts , the cpu goes into 100 %
usage , with about 95% iowait and the disk throughput drops.

i did not have this problem / did not feel it that much with 8.10


my kernel ( standard from 9.04 ):
Linux 2.6.28-11-generic #42-Ubuntu SMP Fri Apr 17 01:58:03 UTC 2009 x86_64 
GNU/Linux

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Random access read speed from encrypted device is very slow compared with other 
linux distributions
https://bugs.launchpad.net/bugs/363763
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