I launched Hardy live CD in VMware and I got your same beahviour: CPU at 100% 
and crash occuring when closing the PReferences windows.
Marking this bug as Confirmed.

** Changed in: xchat-gnome (Ubuntu)
   Importance: Undecided => Medium
       Status: New => Confirmed

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xchat-gnome crashed with SIGSEGV in g_object_connect()
https://bugs.launchpad.net/bugs/191543
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