When system and svchost are consuming your cpu cycles, it's often hard to pinpoint what exactly is happening behind the scenes. Your computer maybe indexing your drive or caching it or something else is going on. I would chalk it up to the inefficiency of Vista. There really was a close class of laptops around that time that should never have had Vista installed on them because they didn't have the power to deal with how slow Vista is/was.
If the CPU is always 40-100% then the CPU is just too slow for the operating system. You could try looking up how to overclock the Turion CPU. You could also try installing Windows XP and see if it makes a difference.
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