Mmmm - I/O maybe ???.
I don't understand what you mean by this ...
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of late i have noticed that the IOWAIT is taking up a lot of resources therby pushing up the CPU load to 2.5+ and sometimes going up to even 9.0.
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The load ave is (at best) only a poor indicator of work queued for CPUs. If you have a lot of IOWAIT, it's even worse.
Best to concentrate on sorting out your disk farm - RHEL should include the sysstat package - check the admin guide for some pointers on what to look for.
Actually I seem to remember a thread a while back about a problem just like this on RHEL - try a search here on LQ.