> I don't think that it runs everything as one thread (it doesn't,
> clearly), but that I/O blocking isn't handled very effectively/gracefully
> in some cases.

Like working with files on a slow network link, or a CD/DVD that is hard 
to read, or a hard drive with a few bad sectors, or a floppy that isn't 
formatted, or having a shortcut on your desktop pointing to a 
non-existant network location, or ...

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