So I followed the instructions for the clean fresh install without the IBM_SERVICE partition. Everything worked like a charm, got the Software Installer and downloaded/installed all the necessary components needed.
Here is my problem. I downloaded DirectX9 and the newest ATI drivers from the software installer, and this is what happens in any game that I play:
Load up game. Game seems to be running perfectly, smooth FPS from my fast T42p

Now, randomly every minute or so my FPS will drop to <50%, and everything will seem extremely sluggish for around 15-30 seconds. Note that I have no other major processes running, no antivirus, no nothing. This is extremely annoying and makes all games unplayable for me, and the t42 was bought mainly for games (besides portability).
Any suggestions on what could cause this random sluggishness?