I'm somewhat skeptical that this will fix the random beachballing, because I'm pretty sure I've been seeing that since before ML. The fact that I put up with it is testimony to how badly windows and (desktop) linux suck.
EDIT: tried the config edit and rebooted, not seeing the "deny mach-lookup" error any more but I am still seeing regular "Unable to talk to lsboxd" messages. I guess I'll try the safemode thing later.
EDIT2: another thing I've done in my quest to banish the beachball is to uninstall iStat Menus. I'm sure there are many others here who use it. It was causing lots of crazy behaviour in the SystemUIServer process. Now I've binned it, things seem better. It's a shame, I liked those graphs. Anyone know another tool that can show me per-process bandwidth usage?