Rather a major issue this one. Basically this seems to happen when the AI tries to throw all its forces up one siege tower or one set of ladders. AI troops gather round the base of the ladder or siege tower and the game comes to a crawl. Took me half and hour to complete one small siege battle at 1 fps! I've got a beast of a PC before someone says turn down the graphics. I've tried to do this anyway and it doesn't make any difference - the lag's not caused by graphics.
Please see this topic for further details:
http://www.twcenter.net/forums/showthread.php?t=67938
And this screenshot for an example:
https://i37.photobucket.com/albums/e65/Taelok/0003.jpg
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