We do have problems with GWT hosted mode running in Eclipse Ganymede (Windwos XP 3GB RAM). When we start our application in hosted mode it takes very long to start and also the transactions once the application is started are taking minutes to react. It seems as if it takes very long to communicate between Javascript and server.
The processor shows almost no load during this time. Even compiling and starting from an external browser does not help.
Strange is that we do have two other computers (one Windows XP one Linux) with exact the same setup where the hosted mode is working at normal speed without any problems for the same application.