Thank you for posting this bug.
Regarding poor performance when 2/2 cores set to VM, this is expected
b/c your host if fighting your guest for the same resources, slowing
performance of both.
The performance issues regarding timer frequency are resolved by using
Lucid and latest virtualbox-ose. Marking this issue as such.
** Changed in: virtualbox-ose (Ubuntu)
Status: Confirmed => Fix Released
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Ubuntu 9.10 and Vbox 3.0.8-3.0.10 lag issue in XP vm.
https://bugs.launchpad.net/bugs/482486
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