All speed problems went away when using ProcView I changed the priority of winlogon.exe from High to Below Normal.
But not ALL problems.
Drive C: has ZERO free space - a huge problem. All the space is consumed by file 785584CF.dll in C:\WinNT\Temp directory. Any attempts to delete the file failed miserably. The file is locked by winlogon.exe and killing this process cause instant freeze. Using ProceXP I tried to close the file handle, to be able to delete it, yet once again - message invalid descriptor stopped me.
It is possible to kill the file in DOS (Zip boot, C: is FAT32) but after new reboot - there we go again. Any free space on C: I managed to free get consumed again and very quickly...
In short - it suxx.
What is weird is, that any time I can boot using the old drive and it works w/o any these troubles. Now that is WEIRD.
I tried SpyBoot (updated), Ad-Aware (updated) and Avast and Kaspersky (updated) to help me get rid of the virus/problem or what the [bleep] this is, but none of them are successful. Avast, tough, find some ntkros.dll file the BSplayer put in my machine, witch make the old version of BSplayer finally run (the new one suxx badly) - but that is probably not related...
Any ideas are welcome!