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PIO mode results in much higher cpu utilization
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Well that's because it it
programmed IO.
when in use, and in my book, "freezes" the system 
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Uhm, you should better say 'slows down', a system freeze is something more severe. In german you would say: 'Das System ruckelt/hakelt' (the system is jerky; I don't seem to find a translation of 'hakelig'; and I don't even know if you can use the jerky term there?)
@Zergrinch: I'm interested - why does Windows revert to PIO? I never experienced something like that (maybe because I'm still using w2k). AFAIK the controller can determine if their is too much cable noise for good transfers. So Windows should know if the read errors were caused by bad cables or were actual (media) read errors.
This thing is sticky, and I don't like it. I don't appreciate it.