Maybe it IS related to Hyper-V! Do you have the same problems when not having Hyper-V installed? It seems that many people get performance problems after installing Hyper-V.
Nah, it wasn’t Hyper-V
I figured out the problem with HDTune.
Needless to say I got a new 750gb 7200 rpm w/32mb cache on the way. Other than this I think I am ready to get Win2008 running perfectly, now if only Hyper-V would work!