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Is there an explanation somewhere as to how IIS6 determins how many ASP
threads its actually going to use?

I have configured IIS6 to have 20 threads (ASPProcessorThreadMAX) but it
rarely uses them all.

I am using the MACT test tool to stress test and with 50 concurrent users I
quite often see only a single ASP thread being used the other 49 are on the
Requests Queued. The Request Wait Time in Perfmon can be averaging around 5
or 6 seconds and there is plenty of spare CPU.

The application quite often has long running queries (15 to 20 seconds per
request) and rather than use another thread IIS will quite often just keep
ticking along with the threads its using with the result that the Request
Wait Time can jump significantly.