Well, sadly, early tests seem to confirm what I was seeing.
I first noticed it when I went to SP2, that while using FSX, I was having a heck of a time multitasking (pulling up charts, using FRAPS, etc). It would get so bad, I would literally have to wait at times in the minutes for an operation to occur. Even checking a forum post or my e-mail was frustrating. Having two monitors, this has always been critical, especially after dropping all my money on that i7 I have.
Once I rolled back to SP1, everything seems to have returned to normal. I posted this topic without delay while loading a free flight session. Not any noticable drop in performance. Wahoo!
I can't believe this fixed it. I grew a few hairs from this. I can't however guarantee this will be the magic bullet for everyone out there.
BTW, for those curious, here are my specs:
EVGA X58 SLI
Core i7 920 (C0) overclocked to 3.9GHz
BFG Tech Nvidia 8800GTX w/ 768 VRAM
3x1MB DDR3 Kingston HyperX 2000MHz (running at roughly 1900MHz for overclock).
3 Western Digital SATA II 32bit HDs (1x150GB, 2x250GB)
Windows Vista 64 Ultimate Edition