<snip>
Thanks, our problem seems to be more of a PASE issue, our native apps
are running ok.  This is very strange to us.
</snip>

Have you checked the memory allocated to *BASE and the *MACHINE pools? 
PASE uses these pools for its memory.  What you are describing sound much 
like a memory issue.  One other thing to check is to see if the system is 
driving significant seize locks or authority look-ups.  Performance tools 
can show you that.  These are the areas that I have found issues in the 
past with V5R3 upgrades (other than the SQL optimizer issue already 
discussed). 

Jim 

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