I've had this problem with xorg as long as I have been using Ubuntu (4 years).  
 
Currently getting this problem on Lucid 10.04 Alpha3 with NVidia 195.36.03 
driver.
When using a "slow" internet connection - which is 95% of the time for me as I 
use a Huawei E172 USB modem - xorg "eats" processor cycles, regularly going 
anywhere between 60-90% of CPU.

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Xorg eats processor cycles while waiting for slow Internet
https://bugs.launchpad.net/bugs/297143
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