I have the same issue on a Lenovo T61p. I am running a fully updated
10.04 which has kernel 2.6.32-25-generic. I also tried rebooting with
the older 2.6.32-23-generic kernel as Karl suggested, but that did not
solve the issue for me.

Issue:
CPU usage by events/1 spiking rhythmically every ~4 seconds (in kernel mode)
This causes severe stutters in GUI, audio, and video.

Other symptoms:
Both Ethernet LEDs are solid on even though there is no cable plugged in 
(normally these are both off in this case).

Work around:
"sudo ip link set eth0 down" seems to immediately stop the CPU spikes. They 
start again when eth0 is set up again. This does not have any affect on the 
LEDs which stay solid.

-- 
High CPU on events/0 or 1 and on board networkcard non functional
https://bugs.launchpad.net/bugs/619343
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