Kernel appears to work, and to solve the problem. 
Hooray. 
I have not tested it extensively, but am running a newly installed system with 
syslog in place, and everything is taking the proper amount of CPU. 
As per your instructions, did not load NVIDIA drivers. My screen resolution is 
800x600 and the system cannot detect my monitor properly, which I assume was to 
be expected.

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CPU runs at 85% constantly with no programs running
https://bugs.launchpad.net/bugs/523319
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