Yes the 'Generating...' message is normal. Even dual-core CPUs process one track at a time although both cores are busy during the process. Make sure there are no other messages about .BT0 files or stretching when the song is generating. That has been known to slow the process down considerably and there are fixes.

Since you just installed BIAB, defragging may help a little.

Only other things I can think are what else is running that would slow down BIAB? If you suspect, use your XP system monitor program (Task Manager) to see if anything else is eating up your CPU.

R