Apparently this is correct behaviour.
Yes and NO.
Yes it is correct that kapm-idled is using 98% (or some such other large number). That is it's job. It sends idle messages to the CPU to save power and keep the CPU temp down. It is the APM (advanced power management idle daemon). And it was introduced into the 2.4.x kernel if I remember rightly.
If you are running Windows XP and open the task manager you will see a similair process that is eating the idle cpu cycles.
What is incorrect is that it shows up in when viewing top or the system info as really using those CPU cycles - they should not be counted on the CPU load as thay are doing nothing. A lot of monitoring software had to be fixed after kapm-idled came out - looks like the stuff for zaurus wasn't among them
Stu