http://demo.rockettheme.com/wordpress
We have 100s of demos, Joomla, WordPress, Drupal, phpBB3, Magento all running on a single demo machine. Sure caching is on, and that helps but it shouldn't make seconds of difference.
I would guess it's something related to your server setup or configuration. Are you running a PHP opcode cache like XCache, APC, or eAccelerator? Those can help a lot. Does your machine have enough memory?
-Andy
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