As others have pointed out, this is not a CPU usage issue. It's at less than 100% usage out of 800% (usually peaks at ~150%). It isn't a hard drive issue either. This HDD can do sustained writes of 20+MB/s from what I've seen. When running WoW, I'll occasionally see a 4 or 5 MB spike, but it usually stays around a few hundred KB/s.
Well...OP you just dont understand how OSX memory management works...
inactive memory = cached memory
Basically, inactive memory is memory that has been used in the past and has data on it in anticipation of future use. Free ram is ram that is completely empty. If you do something new that isn't in the active or inactive ram, and there is not enough free ram for the task, some inactive ram is converted into active ram.
I'm sorry, but this is incorrect. In theory maybe this is how the OS is supposed to work. But it actuality, it doesn't.
If I launch this game with 1.4GB of free memory available, it runs smooth as butter. Guaranteed. With less than 1.2GB free, it's a completely different story. It doesn't matter if I have 5GB of memory is stored as "inactive". If I don't have enough RAM marked as free, the game is slow as hell. The reason for the small number of page-in/outs in the picture I posted is that I still had about 1.2GB of free RAM until I launched the game, which had only been running for about a minute. In fact, if I launch the game with my RAM in this state, I'm entirely positive my HDD will page-in/page-out itself into oblivion, making very little use of the 8 GB of ram installed.
And this isn't a problem with this specific program either. If I have under 50MB of "free" RAM (ie when I'm running WoW), regardless of how much I have marked as "inactive", my other programs also run agonizingly slowly (Chrome or Firefox for example).
I have found one workaround though. If I launch a million other memory intensive programs, it seems to help a bit. For example, launching Photoshop, iMovie, Premiere, Garageband, etc, all at once does force the system to release a few hundred MB of memory (though it should be releasing memory in the order of several gigabytes, not megabytes). The OS still doesn't allocate enough of the inactive (supposedly "free") memory for the programs to run properly, but it does release some. I can then quit those programs and have maybe 100-200MB of free RAM, which is generally enough for what I need to do. (Funny, even with 8000MB installed, the difference between 20 and 120MB of free RAM is incredible)
With all other bottlenecks ruled out (network usage minimal, disk activity minimal, CPU at 1/6th usage) I can say with absolute certainty that this is a memory issue. I can't believe people have to audacity to tell me I don't understand how the OS works. Honestly, even if I didn't have a clue about the workings of Mac OS X, I can see there is an obvious problem just by how slowly my programs run.
And to the people telling me to restart my system of stop multitasking, is that some sort of joke? For an OS that prides itself on it's UNIX based core (I can only assume this is an appeal to those who are aware that massive UNIX-based servers are incredibly and have uptimes in the range of weeks to months usually) and brags about it's multasking capabilities, I find it's inability to manage 8GB of RAM incredibly sad (Windows runs fine on 128 MEGABYTES).