Getting exactly the same issue here;

Xorg -version

X.Org X Server 1.6.0
Release Date: 2009-2-25
X Protocol Version 11, Revision 0
Build Operating System: Linux 2.6.24-23-server i686 Ubuntu
Current Operating System: Linux mobilebox 2.6.28-11-generic #42-Ubuntu SMP Fri 
Apr 17 01:57:59 UTC 2009 i686
Build Date: 09 April 2009  02:10:02AM
xorg-server 2:1.6.0-0ubuntu14 ([email protected]) 

Tried it with and without desktop effects before anyone points to compiz. Was 
working flawlessly with 8.10
Fresh OS install and apt-get install notecase from channel makes no difference. 
Made author (Miroslav Rajcic) aware.

strace

Appears to have xorg running around 95% and notecase at 50%



** Attachment added: "strace-notecase.txt"
   http://launchpadlibrarian.net/26315500/strace-notecase.txt

-- 
notecase consumes 100% CPU
https://bugs.launchpad.net/bugs/370819
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