Disconnecting WLAN seems to release 'events/0' command from hogging all the cpu resources. There are more WLAN related serious problems than anything else in 770 (disconnects, wpa, sluggishness etc.), but after browsing bugzilla there might be hope soon!
Source:
https://maemo.org/bugzilla/show_bug.cgi?id=192
Last line dated 2005-11-21 :
"There will be a new release available within few days. It has a working WiFi."

I hope it fixes these issues and that they release it soon to us end-users also!