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Labeling using ArcIMS ArcMap server takes 6-10 seconds longer than normal.
This is caused by an increased number of .MEM files in the temporary directory. Labeling performance decreases proportionally to the number of these files.
.MEM files often get left behind due to crashes, etc. These files are used by the labeling engine as temporary work spaces.
Delete the .mem files from the system temporary directory.
Refer to the link in the Related Information section on how to setup ArcIMS Tasker to automatically delete these temporary files.