I still have the problem with all the latest updates installed. I had
upgraded from jaunty few days back. I have just finished rebooting my
system after a full update. My xorg version as reported by dpkg is
"1:7.4+3ubuntu5". Cpu usage goes as high as 35% this dual core 1.6Ghz
system.

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[Karmic] xorg-server has high cpu utilization - system  slow and unresponsive
https://bugs.launchpad.net/bugs/407309
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