I can confirm it as well for ubuntu 7.10.

I can add that the problem started to occur on my pc after I

1. did place the default low panel to the left and
2. changed its behaviour to autohide:yes

After that, gnome-panel will slowly eat up more and more cpu and memory, 
wasting 170mb RAM + 50% @2 cores after 10 minutes. 
Information is from System>System Monitor.

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gnome-panel eats 50% cpu for half an hour and flickers
https://bugs.launchpad.net/bugs/52405
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