Yes running each of the sites isolated would be a good idea.That way even if one goes down, the others would still be up.
Also each activeX component should be run isolated(as a package under MTS), at least until you are sure that they are  100%  reliable.
                       If your CPU usage is very low and even then the site is slow, you could try increasing the no. of threads/ processor in IIS.
 
BTW I work in hampshire.
 
good luck
 
Gopal
http://www.sunbelt-software.com/ntsysadmin_list_charter.htm

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