Try to run sp_lock stored procedure to see if there is any lock contention.

>Hi Guys,
>I have a sql server running on a Xeon 1gb ram, 250 GB HDD dual processor.
>
>When there are 3 connections to the server the performance is excellent.
>when more than 3 or 4 start connecting the server seems to freeze and becomes very slow.
>is this a licensing issue ?
>Can anyone help