This is not due to free memory, but to the way the scheduler works. This probably seems related to free memory, as the more processes, the less memory ;-) Kernel 2.6 has a much nicer scheduler. (too bad, sleep still has problems - at least for me).
Where do I get the source for the benh 2.6 kernel from? I googled but couldn't find it... I'm assuming ofcourse that a benh 2.6 kernel exists.. :-)