I believe this is a known issue for Windows XP VM's.
Do you have hardware virtualization?
Many older CPU's do not have support for virtualization and this is known to 
cause Windows XP x32 VM's to run the processing power all the way up.  Vista 
and XP x64 have support for 'lazy IRQL' which allows them to bypass this need.

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KVM eats 100% CPU, Host Hardy64, Guest XP with more than 1 VCPU
https://bugs.launchpad.net/bugs/228442
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