The older Pentiums run very hot... after some time, dust buildup on the fans/heatsinks make them run even hotter. Eventually, when they're under heavy loading, I believe most of them will start throttling back to try and cool themselves down... I think this is what you are seeing.
When the CPU is throttled, you'll see it will go to 100% usage when running games etc, because the CPU is trying to run the same stuff but with less CPU cycles available.
Try opening it up, get a compressor or one of those cans of compressed air, and blow all the dust out of your CPU heatsink and fan (you might want to do this outside!). I had similar problems when I had a 3GHz Pentium D, but I reduced the CPU running temperatures by about 20 degrees just by thouroughly cleaning the heatsink and fan.
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