Re: Performance problem 100% CPU
http://www.rackspace.nl/content/images_za/ppc_landing_pages/virtualisation.gif
VPS is not the same as dedicated even though it’s close.
Not sure how many visitors you get per day, but on my home install (this pc) I got 100 visitors at a certain moment on my buddypress driven site and it didn’t even went over 10% (that while running a lot of other crap, like firefox and photoshop).
Setup: 3.07 GHz (i7 950) and 6 GB Ram.
Why not try running a simple script (maybe GD or something) outside of wordpress and see if you get 100% CPU, if it doesn’t, then accuse wordpress.