I don't use speedstep. Does your speedstep make the multiplier and voltage run up and down about every other second or so? When I have EIST speedstep/C1E enabled on my E4500 (default 200x11), the system somehow goes up to 11x and down to 6x, and then just keeps going up and down even when I'm idling. I see verything because I run RightMark Clocking tool. The speedstep does not seem to want to stay at 6x which is what idling should do. My CPU load is about 0-1% when idling, and it should not trigger anything that'll hit x11.
That said, this is not the main reason I dont' use Speedstep. The issue that made others and myself turn it off is the factory default multiplier. My E4500 has x11 multiplier and 200mhz FSB by default.. If I want to run higher FSB, ie. 400mhz, that'll translate to 400x11, 4.4Ghz, that's way too high to be stable. When I have EIST speedstep/C1E enabled, the board boots up 400mhz because I set the FSB to this value in BIOS. But....even though I set the BIOS multiplier to be a lower value, the Intel processor driver that loads with WindowsXP would override board's set up on multiplier (for example, x8), and make the CPU run the default multiplier at x11. This will cause Windows to hang. So that's the reason people disable these, because they have multiplier headroom that they can't use.
Now the only way I can leave EIST speedstep/C1E on is to use slower FSB for the overclock. I could use 300mhz, and x11 gets me 3.3Ghz. This would work fine for making CPU faster, but it takes away the memory access speeds and makes the whole system slow. So what I am doing now is disabling EIST speedstep/C1E, and then set the mainboard to boot at 333mhz FSB and x9 multiplier. This gets me a very cool running 3.0Ghz. I don't have EIST/C1E, but I also don't miss the wild swinging of the voltages, which probably hurts the processor and motherboard and powersupply more than any savings.