No it does not appear to be a hardware problem I did notice on the image where you show processes that LW is using 14% and task manager is using 14% but your total cpu usage is 93% do you know what other processes are eating up the cpu. I tried to duplicate by making diffrent processes start up the only way I could get the high cpu usage was to preforme several searches at once IE start/search while doing this explorer.exe got stuck in a loop after it had completed search and hoged cpu 93% I doubble clicked on explore.exe in the task manager window after about 5 min. and it droped back to normal. I see that explorexe.exe is at 0% on the immage you provided so there is another process running that may have a conflict with LW could you give a snspshot of task manager processes showing tasks running in order of cpu usage it might help the devolopers of LW figure the problem out.

Latter Grandpa