Android 4.0.3 sluggish: nandd process hogging CPU
I have this issue too on an archos arnova 10cg3 tablet.

It looks like the system is reading/writing to the nand flash (your internal storage on which the system + the apps are stored) and that fails for some reason. Try to do a factory reset and if that doesn't fix the problem, send the tablet back for RMA. 

The nand chip could have failed or the system is not properly configured to read from it.