Here’s the deal, I was having this same issue with the latest version of wordpress (2.8). I called GoDaddy’s support and they told me that the server is fine, and that I should optimize my site with websiteoptimization.com.
Websiteoptimization.com said that it would take 7 seconds to load on a T1. I put in CNN.com, which said it’d take about 55 seconds on a T1. CNN.com was loading faster than my site, so I know there is obviously something wrong with this picture, and it’s not my code!
I set up a test using a hosting reseller account I have with hostdime.com. I set up my domain with that, and instead of changing the nameservers over I just used the IP address. It took a little trouble with my .htaccess file which I was able to remedy with their livechat tech support over about a half hour.
So now I have both sites up in my browser. I click on the GoDaddy hosted site first, and then click on the same link in the hostdime hosted site. Hostdime comes up right away, while Godaddy is still chugging along.
I just thought I would post my experience in case it could be helpful to someone else… but I am definitely convinced that GoDaddy’s php and mysql processing is a joke. I am not impressed with their hosting at all. I’ll continue to use them for domains, because I have for years and I like their prices, but hosting: absolutely not.