Thanks for the interest Mitch, this is causing us and our client grief.
Settings were set after we found we had a performce issue but before we found the above issue through the SQL Trace. They are:
Page State Persistence: Page
Module Caching Method: Memory
Performance Setting: Heavy Caching
Authenticated Cacheability: ServerandNoCache
Compression Setting: GZip Compression
Use Whitespace Filter: On
Use Friendly URLs: Off
We've reindexed the TAB,PERMISSIONS,USER etc tables
SQL (SqlServer 2005 SP2) has high memory usage as you'd expect and Server (Win 2003 SP 2) CPU usually runs at 10% except for spikes over 80% whenever mutilipe users access the troubled portal.
Hope you have some ideas.
Paul