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The problems arise with disk bound tasks. In particular, when you run out of real memory and have to swap. When you try to multitask on a machine where one app is consuming a lot of memory not only is the app you are trying to use starved of RAM, but it competes with the first app for disk IO to swap.
Almost inevitably poor performance in these scenarios can be improved by buying suficient RAM for the primary task to run in memory. For Photoshop this could easily be a couple of gigabytes.