?? I don't see the problem... the app is running fast enough! works very well for me! Never saw something like "slowing down the whole system" till now. I install many winxp systems all the time and optimize them for speed, i never saw a bad effect of .Net 1.1 or .Net 2.0!
And: I tested the suspend mode of winxp today. The App survives it!! The recording continues after windows is back up and running... perfect! ;-)