Why is VMware Player 3 so slow with Ubuntu 10.04 LTS?

Here's my simple stats:

Host: Ubuntu 10.04 32bit LTS
Intel E7500 C2D
4gb RAM (running Ubuntu PAE)
3 TB harddisks
Nvidia 9500GT
Linux kernel 2.6.32-25-generic-pae #45-Ubuntu SMP i686 GNU/Linux

Guest: Windows XP 32bit
Running with only 1cpu
512mb Ram
Turned off paging file / swap
Fresh install also uses a lot of computer processing!
Installed Vmware tools

Any ideas guys?