The CellDynamicFormatting event is raised as a part of the drawing cycle. In normal conditions, it is raised only one time for every corresponding cell. If it is raised constantly and the CPU usage jumps up to 25% (most likely, it is a quad-core CPU), this may mean that you may have additional actions related to focus change that causes additional redrawing operations for the grid.
Can you reproduce the same problem in a brand new project with iGrid that has only the CellDynamicFormatting event handler? If yes, send this sample to us for the further consideration.