Stan,
as newer DNN versions need more resources, it could be that 2 GB of RAM is a bit too less - did you check if there are same tasks/services causing a high processor or memory load (TaskManager, RessourceMonitor)?
Recycling an AppPool is a bit different from stopping and starting it. Did you try this, does it make a difference (at least for a while?
How responsiive is the SQL Server on the other machine? Didi you do any performance tests there?
I guess you have access to the database server, so you could have a look how much records the eventlog table holds. If this is very much, try to truncate it. If there is only one portal for this database, you can use
TRUNCATE TABLE {databaseOwner}{objectQualifier}EventLog
by replacing {databaseOwner} and {objectQualifier} by it's appropriate values, eg. dnn62.dnn_EventLog or dbo.EventLog.
If there are more Portals and you wish to keep the eventlog entries from the other tables, you should use
DELETE FROM {databaseOwner}{objectQualifier}EventLog
WHERE LogPortalID = portalID
Replace as above, and portalID by the actual PortalID.
Best wishes
Michael