Okay, I tried your demo on my laptop. The specs of that are:
Windows XP SP3
Intel Pentium M 1.60 GHz
590 MHZ, 512MB RAM
ATI Mobility Radeon 9600/9700 Series
And it did not like that demo at all. See attachment. I had 100% CPU time constantly and was watching a slideshow, where every 5 seconds (or longer) the frame was updated.
Again no idea why or what the game was doing, because there is no debug file to show to you.