To be honest, I'd think it's the words VPS that are the problem - even though they may give you a decent slice of RAM and CPU, disk I/O tends to be lousy, and that really slows things down. Even on a single core machine, a server load of 1-2 isn't particularly high. Don't forget too that if you have multiple cores, 1-2 isn't high at all.
Is it a shared MySQL server, or one running on your VPS?
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