i'm using an old p133 (before p66) holding all my oggs for serving, doing proxy, apache, mail,.. and plays oggs without any problem (~40% cpu) with mp3blaster at the console (it's a sb16 isa). so i don't think that's a performance problem. try setting xmms to a nice value of -10 (man renice) and see how it does.
maybe you have problems because X is running with nice -10.
is it a pci or isa soundcard? maybe there are latency problems.
sl mritch.
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