I'm still seeing this, as of latest updates on 9.04.  Just asked
Nautilus to expand a 650 file directory in the same window, in list
(tree?) view.  The content display drew after about 75 seconds, but
Nautilus remained hung for another 3 or 4 minutes, and whatever it was
doing redispatched to different CPUs three times.   It sure seems to be
doing something seriously inappropriate it didn't a few months ago.

( Duplicate of this comment posted on bugzilla.gnome )

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nautilus excessive cpu and delay opening directories
https://bugs.launchpad.net/bugs/364838
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