Came across this explanation re the processor activity with XP
What you are witnessing, if you have not scheduled any other background tasks to run while the system is idle, is the XP Indexer at work. The dead giveaway is the fact that your HDD stops the activity as soon as you start another activity. It kicks in periodically only when your processor is otherwise idle. The purpose of the Indexer is to speed up your file operations. If you have a large number of data files, say hundreds, having their location indexed by the system could be beneficial, at least in theory. If you don't have a large number of files in your My Documents folder or other data files, you might consider turning the indexing off.