Core 2 Duo 6600 (2.4 GHz, 4MB cache)
2GB RAM
Debian Linux, kernel 2.6.34.1
BitCoin 0.3.0 Beta (32-bit x86), with custom SSE hash code
Very responsive. No significant change in interactive response.
1 thread: ~4200 khash/s
2 threads: ~7700 khash/s
What is this custom SSE hash code?
Now, now. If I told you that then I would lose my advantage.

Suffice it to say that I leverage SSE instructions to calculate four hashes at once, per thread.