Dhoward,
I've been monitoring the system today and the "System" Process (NT Kernel & System) has been averaging between 3% and 15%. This is down from the 60% - 80% that it was consuming before. It's still a little weird that this is the only system we have with this issue, but for now it looks like the issue is fixed or at least much better. So I would say the hotfix did the trick. Let me know what you see if you end up applying the hotfix. It looks like they have 3 version of the fix for Windows 7/Windows 2008 R2 (X86, x64, ia64) I applied the x64. I didn't know 2008 R2 had a 32bit x86 version, I thought it was only 2008 that had that. So not sure what that is all about.