Has there ever been reports of this hogging resources in XP?
I assume it's something that uses the CPU for other OS tasks when not in operation by the user. The problem is even when I'm using the computer it uses 97-99% of CPU.
Emmmm... the "System Idle Process" actually shows "free" CPU resources, not "used" resources. It also has influence over HLT commands and power-saving CPU features. In other words: Leave it be.