From what I understand, the labels of "Programs" and "Background" are kind of misleading. When set to "Background" all programs and activity are shared equally with the processor(s). When set to "Programs" more priority is given to whichever program has focus at the time. Now, you may think the latter is a good option (since focus is on the audio program your working with), but things like plugins and your drivers (WDM and ASIO) run in the "Background". Typically, you don't want the processor to give prority to your program's interface (because that's a menial task when compared to what your drivers and plugins are doing).
FYI, when you tell XP to "Adjust for best performance", it chooses "Background".