File/Disk copying hang-ups on Windows 2003 Server w/ Mirro..

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All,

Has anyone seen this before or does anyone know how to fix file copying
issues in Windows 2003 Server, specifically with a W2K3 mirrored IDE disks?

I have a Windows 2003 Server running as a small file server for a small
workgroup. The system exhibits poor disk performance with somewhat slow
reads/writes to the disk, somewhat high CPU utilization with file transfers
randomly locking up (won't copy large amounts of data without dying out).

The users are accessing a pair of 250GB IDE drives that are mirrored under
Windows 2003. The disks are attached to the same IDE controller built into
the motherboard. The mirrored disks are only used for user data, the
operating system and other 'system' files are stored on a 36GB SCSI drive.

The server is a brand new Dell PowerEdge 1600 with a 2.4Ghz. Xeon processor
and the CPU seems to hang around the 40%-50% mark which seems odd as the
computer is only acting as a file server, and is only serving about 5 users
which are not heavy users. No other applications are running on the
computer at all.

I know it would be better to be using a hardware mirroring and/or a SCSI
disk solution but the client wanted a 'budget' system and wanted it to be as
low cost as possible. Does anyone have any idea's or know of any solutions.
This one has me stumped, as I've configured somewhat similar solutions under
W2K without any problems.

Thanks in advance for any help...

-Bryan

Environment:
Dell PowerEdge 1600SC Server 2.4Ghz. Xeon CPU
1 36GB SCSI Drive Running Windows 2003 Server OS
2 X 250GB IDE Drives Mirrored (software Mirror in Windows 2003) attached to
same RAID controller and channel. Partitioned into a single volume set that
is shared for users to access.
Mirrored IDE Volume only has about 30GB of files on the 250GB partition.