Poor Performance with SmarTeam

SW2007 SP5.0
SmarTeam R18 SP4
Servers - HP Proliant (AMD)
Client - Dell 490

Solidworks slows down significantly when the SmarTeam add-in is on.Rotating a new part gets jerky graphics, and the smarteam menu isslow. Turn off the Smarteam add-inn and SolidWorks runs normal.

We have also installed an all virtual environment in which theproblem does not occure.SolidworksAdministration