Lionsmike, your answer is one of the few that really focuses on the best way to start identifying the problem. Identifying the process that is causing the high CPU time is the only right first step in solving the problem.
waytron's answer, voted the best a/o 2/26, mentions this in step 5, but many of waytron's other suggested steps are steps that are very unlikely to be of use, and would only be considered as a last resort. E.g., disconnecting peripherals, updating drivers, updating BIOS, etc. might be useful only in far less than 1% of the situations that have a high CPU time problem.
The biggest "automatic" user of CPU time on my system is Norton 360. It seems to do periodic small checks of some sort in background that eat up a lot of CPU time and can't be cancelled. And Norton 360, unlike Norton Anti-Virus, uses a lot of CPU time briefly for every web page you go to. If I knew for certain that a different anti-virus program was less likely to hog my system when I didn't want it to, I would move to it immediately, but that's not something covered in the reviews.
If Norton put a simple check in its programs to keep its share of CPU usage at a maximum of 40%, millions of users would be much happier. If anyone knows of an anti-virus program smart enough to limit its CPU usage, I'd love to know of it.
A number of people mentioned a CPU usage problem if a system has been off for for than a week or so. That's very true. I have an old backup system that I only use every few months, and when I turn it on it takes a LONG time for it to complete all the updates it wants to do.
The big problem with high CPU usage on my laptop is that it causes the laptop to overheat and shut down unless I open it up and dust it out myself every six months or so. I use a free program called SpeedFan to monitor the internal temperatures, and it has been very useful.
The other two top answers, by NoxTheOx and PBaker2, do correctly address finding the culprit process, but are short on the description of what to do about it. The process may be one that doesn't allow you to cancel it, such as many anti-virus processes that are very efficient at hogging CPU resources. It may be a virus. It may be something else. It may be a task started at startup that you can prevent from starting by using MSCONFIG.
Being short of memory does not affect CPU usage by more than 2-3%, but being short of memory does slow down your system dramatically by forcing swapping of real memory into and out of virtual memory on disk. The extra CPU time required for the swapping is very small, but the clock (user) time required for all this disk swapping is very high.
Heavy CPU usage will cause your system to run much hotter, but running hot does not increase your CPU usage.

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