Don't worry guys, I fixed it.

I installed Conky and saw the problem was that the Xorg process was constantly running at 97% or so.

The culprit was the 'Advanced Power Monitor' I had installed a while ago. It seems that even when you uninstall it, it doesn't remove all the files and a script it was running was causing Xorg to use all my CPU.

Thanks to the thread here --> http://talk.maemo.org/showthread.php?t=60588 I managed to save my N900.

Refer to this post on how to fix it:

http://talk.maemo.org/showpost.php?p...2&postcount=45

Note: You have to have rootsh installed and be logged in as root to run the command in Xterm.
(ie. type 'root' without the quotation marks before running the commands).

Then simply reboot and voila! Your N900 is saved!