I now have acquired enough evidence and confirm all my writings above.
It implies that there may be a scheduling issue in the linux kernel of ubuntu 
10.10.
I will try to check if there is similar issue also with Natty.

(I have 15 years of experience in performing CPU intensive tasks on UNIX/Linux 
workstations
and servers and this is most likely for the first time when I experience the 
reported kind
of the odd behaviour.)

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https://bugs.launchpad.net/bugs/782092

Title:
  ssh server extremly unresponsive

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