It turns out this is a common problem and is due to the lack for native xpath support in IE. So for all the selenium tests that use xpath=//..... in IE the xpath is actually being evaluated using javascript ... ouch. An alternative is to use css locators, you can't do this everywhere but as well as improving the IE performance it can also provide some rather tidy rules. For example
xpath=//div[contains(@class,'balance')]
or
css=.balance
xpath=//div[@id,'topLeft')//span[contains(@class,'name')]
or
css=#topLeft .name
So even if you dont' care about IE using css selectors might be a lot nicer. (It might also improve your css skills!)