I'm also experiencing major problems with CPU usage.  See my attached 
Windows Task Manager - Performance screenshot.  

I have no problems with small projects, but on a medium sized project it 
will take me on average 24 seconds to do a Rebuild Project and on average 
37 seconds for the build when I launch the app (not included the time to 
upload to the device).  Most of that time is during the pre-dex and dex 
tasks.  All together I have 588 files in my src folder, which includes all 
of my java and xml files.  

I am also experiencing delays in iTunes when I am playing music.  It's very 
strange.  My songs literally skip as if I'm playing a scratched CD 
(remember those?)

This issue was filed as a ticket but for some reason it was closed:

https://code.google.com/p/android/issues/detail?id=68293&;

Apparently Google is assuming all tickets before version 1.0 are now 
invalid.

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