Rails - May 2006 - Performance problem with Apache-FCGI-Rails

We have our Rail 1.0 application running on Apache 1.3 with FastCGI. The 
httpd.conf has :
<IfModule mod_fastcgi.c>
  FastCgiIpcDir /tmp/fcgi_ipc
  FastCgiServer /root/zs/public/dispatch.fcgi -processes 2
  FastCgiConfig -autoUpdate -initial-env RAILS_ENV=production 
-idle-timeout 120

-maxClassProcesses 2 -killInterval 300

</IfModule>

The dispatch.fcgi is the default provided in the Rails app:
#! /usr/local/bin/ruby

require File.dirname(__FILE__) + "/../config/environment"
require ''fcgi_handler''

RailsFCGIHandler.process!

When one person is remotely accessing the application, the speed is very 
good. When there

are two or more people accessing, the app becomes very slow. It seems 
that the dispatch.fcgi

has to occasionally restart. However, the restart takes about 20 
seconds, which makes the

app occassionally slow.
Has anyone faced a similar problem? What is the solution?

Thanks,
Yash

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