Hi,
does anyone know what this means and does it have anything to do with the speed of ArcGIS as its running incredibly slow.
Have you looked at Memory Usage in Task Manager to see how much memory is being used on the AGS services?
Yes, the memory is looking alright.
What is the maximum number of instances allowed for the concerned service? If the load on the server machine is fine, you may increase the maximum number of instances. Increasing the timeout, is another option.
The performance of the ArcGIS Server depends on many other factors as well. Tune and configure services
Tune services using best practices